Tuesday, September 27, 2011

In Gold We Trust

I should have known better than to cheat a friend
And waste a chance that I'd been given
--Wham

As always, keen insight from Jim Grant. He argues that the price of gold = 1/T, where T is trust or confidence in the institution of managed (or fiat) currencies.

Is gold in a bubble. Wrong question says JG. The bubble driving gold price is government.com--absurd monetary and fiscal policy. Gold merely reflects merely reflects the absurdity.

Gold is a bet on the disorder produced by government.com

position in gold

1 comment:

dgeorge12358 said...

It is particularly odd that economists who profess to be champions of a free-market economy, should go to such twists and turns to avoid facing the plain fact: that gold, that scarce and valuable market-produced metal, has always been, and will continue to be, by far the best money for human society.
~Murray Rothbard, September 1991