I guess gold is like Glenn Beck's "Food Insurance," only in this case it would be "Money Insurance." The only thing is, if there is a total collapse of civilization like Beck predicts, then what are people going to need gold for? They can't eat it, can't build with it, it won't keep them warm, etc. That doesn't stop Beck from trying to fleece his herd with Goldline coin adverts though.
What Rush Limbaugh, Glenn Beck, Laura Ingraham, and other right-wing pundits are really asking their followers to do is to speculate in gold and pump up an existing bubble. As a commodity, gold doesn't produce anything so its value depends purely on trading. The more people who buy gold, the bigger the bubble gets, and the more they'll lose when the gold bubble invetiably bursts. (After all, Republicans will eventually take control of Washington, save America, and restore the dollar, right?) Of course, those in the know who got in early on this paranoia and will sell out before the bubble bursts could make a bundle. But are you that cunning, and did you buy gold early enough? If the answer to either is "no," then stay away from gold unless you're an eccentric millionaire.
Remember, gold is not a very good hedge against inflation, it's a hedge against calamity and instability.
Analysis: Here's why the world's love affair with gold is dangerous.
By David Case
November 10, 2010 | GlobalPost
By David Case
November 10, 2010 | GlobalPost
URL: http://www.globalpost.com/dispatch/101110/gold-investment-robert-zoellick
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