Jamie,

Bar the door, the yahoos are on the way. You know that's rank heresy that you're speaking, right?

But I don't think the time to sell is quite yet. With the recession ending, discretionary spending will improve and there will be greater calls for jewelry. Also, deflation has not reared its ugly head in many areas, housing yes, but how much of the oil price changes over the past few years have been systemic and how much the result of market manipulation? Food prices haven't dropped substantially. Cokes are now a bargain at 12 cans for $3.00

Now is the time to watch and wait. But that's why God made horse races.

What neither of you realize, gold does just as well during serious deflation as well. However, you have to study history, which apparently do not want to do. Don't buy gold or silver, that is fine with me. Do you know anything about technical analysis? BTW, besides homes, where is the deflation you speak of?

Tulips huh? And at a guess how much demand do you think takes place during a mania? How much investment demand was there the last time gold went through a blow out?

Here's a little clue for you. Look back at behavior last time gold peaked for indicators of when to sell. Until that time look for buying opportunities and of course enjoy the ride up. I know I have.

This item is truly amazing!

No deflation? Deflation is an decrease in the money supply and we are only in a deflation phase because banks won't lend -- but sooner or later they will have to and inflation will harder than an elephant falling from the top of the financial fiasco. Or do you prefer to define deflation as a decrease in prices? If so then I assume you have not been to the grocery store recently.

So, gold has no value? How do you define value? Do me it is the price I can sell something for. Well, I can sell my gold for more units of fiat currency than I could when I bought it. So, if you define value in terms of fiat currency, as you appear to do, then I guess gold's value has increased.

So gives no interest? What is interest? It is an increased return on your assets, but usually you have to let someone else use it in order to gain that return. Gold is returning a significant increase right now and you don't even have to let it out of your sight to realize it. Which is preferable?

I could go on and on, but it hardly seems worth it. So I'll close with one further comment. If you cannot get the date right on the tulip market bubble (it was the early 1600s, not the 1800s) why should I think you can get anything else right?

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Hmmm, Gold has had value for the last 5000 years,

and the oldest fiat currency system that's ever existed is... our current system, and it's lasted for all of 38 years.

Your tulips are green and come from the Federal Reserve, and 2 trillion of them were spent in the last year that have been made by simply cutting trees and giving the Chinese and other suckers, uh I mean "investors", a big IOU.

If you have faith in our financial institutions, let me again remind you.

2 trillion dollars.

2,000,000,000,000 dollars.

Jamie:

You should have been the assistant Sec. of the Treasury, speaking to a group of businessmen in Cal. ca. 1851. His speech was paper vs gold. He never finished. For the record, he was lucky to get out of the State alive.

As some of the other commentators have stated, yes, it is a commodity that has glitter but no real value, no value in the sense that it's use is primarily jewelry. All of this true, but as John Gresham stated, value is intrinsic in nature and gold has a long history and a lot of "intrinsic" backing it.
In 1850 aluminum cost more than gold. What is it worth today? For the record, that is what is atop the Washington Monument - Aluminum, not gold

As far as value, your position is that it is overpriced and will drop. I have to presume that you are quite young and have a lot to learn as I think that you are going to be in for a bad time. I am not dealing in gold but I fully expect that it will hit the 1200 troy ounce mark, probably within the next six months UNLESS someone figures out how to make JOB CREATION a positive statistic.

I find this doubtful and feel that we will be in a period of stagnation for a long time to come whereas hope and optimism will give way to despair and pessimism. There are too many people out of work and winter is coming. It is as Thomas Paine wrote - winter is a time of dissent.

fuzzy,
You are wrong. Those dollars are made out of cotton and linen fibers! ;-)

This piece lacks so many things on so many levels. Gold and silver have been used as currency for thousands of years. Metal is worth something, paper is not.