--Eli (The Book of Eli)
As these pages have noted before, gold can be seen as a bet on systemic disorder. When times are perceived as stable, there is less reason to own gold. Economic resources are better allocated toward other ends.
But when times are perceived as unstable, and doubt builds about systemic capacity for exchange and wealth preservation through conventional means, gold becomes an attractive alternative for managing risk.
Bets on systemic disorder have been increasing for more than a decade. After some healthy technical consolidation, it appears that those bets are once more on the rise.
position in gold
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3 comments:
Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: 'Account Overdrawn.
~Ayn Rand, Atlas Shrugged, p. 385-386, (1957).
Great quote.
Atlas Shrugged II - in theaters October 12, 2012
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