those hedge fund speculations? how about the home loan market, that hasn't destroyed credit? your are delusional about economics period.

Can we petition BloggingStocks to stop publishing articles by this guy?

Just stick with your stock's Jamie. We'll see how happy you are when you have lost another 30%+. Its a long way down from here!

I totally agree with ij70. This guy is making the most ridiculous dumbfounded claims of how gold is not in. He's hiding the fact that the dollar is not the strongest currency int he world.

Gold holds no real value. You can't walk into a store and buy groceries with a lump of gold.

You can't walk into a car dealership and buy a car with a lump of gold.

Gold is only worth what the market says it is in a currency. If inflation runs amok you may be able to get more dollars for a lump of gold but the real purchasing power of those dollars has been eroded. The paper value of gold may have gone up but the purchasing power of the lump of gold has stayed the same or gone down.

Gold is only a tool used by corrupt hedge find managers to seperate people from thier money in order to profit from them now. That is why you are inundated with commercials for gold. If it was really worth what they are telling you then why would they want to trade you gold for your dollars.

Ask yourself that question. If gold was really worth what they say why would the holders of gold want to trade you this commodity for your dollar? They are trying to unload gold. They know that coutries are getting close to confiscating gold assets just like the US did a little less than a century ago.

Point to keep in mind, you still have about 70% of dollar outside the usa. Which means the international community have a huge stake in the rise and fall of the dollar. A devalued dollar is not in china's interest. Over time yes, but not now and not too fast. So it is in most reserve banks interest to controll gold prices to suit their needs, or manipulate them for long term goals. Gold in this respect will play a key role. Second point is confidence in the financial markets. A high increase in gold prices reflects a major lack of confidence in the financial markets and spells big problems. And so far we have seen a major shake in this area that most, in my view, would love to get this one over and done with. There is plenty false hope out there, but hope it is. No one wants to go through a great depression and what the government is doing really is create hope and by doing that bring back confidence, and that is the keyword - confidence. And this word applies also to the gold situation. Gold has very little significance in the real economy or industrial world. In the past it could be melted and used in more meaning full ways, hence it had value. But not any more. And this is the one word the yellow stone share with the dollar bill, confidence. I agree it's of more value than the dollar, but that is due to fact that it is a tool for hedging and manipulating currency, but this also applies to currency in that strength in the dollar is not good for gold investors or bad performance in gold is good for currency. So if confidence, which affects gold, is revived in the real economy and maintained in the financial markets then it may lessen the long term blow of deleverage and lend some value to the markets, this could controll and hold back a high rise in gold price. This in my view is the better of the other evils, a very long little or just enough growth in the world economy, than gold spiking high and your dollar hitting bottom, which it will, and your chines coming up with some new world currency.