Is the 'Gold Rush' over?

[wildkactus]

The thing with gold is it will always have a worth,
some people who are buying it (physical delivery) are doing so as a doomsday insurance policy, not an investment.

If the current world as we see it does not exist tomorrow, ie WW3 or the such, gold will become one of the currencies of the day.

There are some older and not so old people here in hong Kong that have vast sums of jewelry just for this reason, as it was the only way during WW2 they could easily move there money around, as they where forced from there homes.

 

[Trembling Hand]

Too true professor; I don't know how they take a 25% loss so gracefully - and can accept it as some sort of normality!

25% Nah! thats just the first point to average down!!

Companies can go broke.............. Gold will never become worthless.

Very true but many of the Gold plays will become worthless. Which makes the game of being a gold bug not such a great one. While the Bugs go about collecting their bits and pieces waiting for the end of the world they are failing to see that they are collecting not gold but Dung!!

 

[Uncle Festivus]

While the Bugs go about collecting their bits and pieces waiting for the end of the world they are failing to see that they are collecting not gold but Dung!!

That could be why everyone can't wait to get rid of their paper dollars and swap them for something that *usually* holds its 'value' ie real estate or at least doesn't depreciate as fast as paper money. The trouble for Americans is that usually reliable assets are deflating (housing) while consumables (food & fuel) are inflating. There is no store of wealth for them any more.

It's not the end of the world, just a stress test of the worlds default currency due to continued & excessive debasement - until something else comes along?