Gold in the Age of Commodities
As President Bush expands his immense bailout effort for the largest of our nations financial institutions, investors are running for cover. Most are afraid of a falling U.S. Dollar, a reasonable concern. Many are buying gold, physical as well as contract.
With the spot price of all precious metals again on the rise, everyone is voicing an opinion, all with an eye towards what the future may hold for the U.S and ultimately World economies. One of today's blog postings, by David Bailey on Seeking Alpha, stirred up a flurry of goldbug commentary. Take a moment and read through both the posting and it's comments and let me know what you think.
Regardless of the validity of what Bailey puts forth about gold as currency or economic deflation, I found his comments about a loss in faith to ring true. Seems to me, given personal comments from friends and acquaintences, that many ordinary folks do not truely have any great ideas for what to do with their investment money. They fear many options, including the stock market and now banks, but few have any particular investments in which they have faith.
Do you have a viable alternative for investment money? Is it gold?