It is an investment, a gamble, just like everything else, and by historical standards gold is very high priced right now because there is a fear bubble, just like the housing bubble, if you think people are going to get even more scared and want to take that bet, buy all the gold you can afford.
The inflation adjusted historical high is $2800. Gold fell with the rest of the commodities back in july. Then is started acting like money and fear has been driving it for good reason.
But when you see something like this.
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.
Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.
It makes you wonder how safe dollar is, don’t ya think. Maybe it’s just monex propaganda. Or maybe we should just ask Chinese speaking and former employee of the IMF, Geithner if he knows anything about it. But he says he has a strong dollar policy so I’m sure it’s nothing to worry about.
