Gold is not possessed of an intrinsic value, that value is imparted or, more correctly, set. It is set by a wide variety of factors, but I doubt you will see a wholesale collapse of the dollar, immediately followed by gold becoming the de facto REAL MONEY.
I think in the short to medium term, as the floating currency regime becomes more and more dysfunctional, which it inevitably will, people will chose to hold it as a value protector just because of it’s history. Actually, I’m betting on it, but for practical and human behavior reasons. Not because I think it has magical powers, which seems to be the same affliction that the fiat wizards have about their money, as well as some gold bugs about theirs. Good lord, more debt is not going to solve the problem of too much debt. Especially at a time when you have less of an ability to pay it off. I agree, I don’t think, it is “REAL MONEY” just a convenient substance that is universal, in a sense that people in all countries treat it as something of value.
I’m an arable land bug, myself, preferably close to a watershed;) Though, It’s not quite the time for that, yet.
