why the rules do matter, page-6

So Infose doesn't have an independent thought himself. Wanders around in Wikiland parroting stuff he can't decipher in some attempt to troll the forum. Surprise surprise. I'll have a look at his rules and I'm not a gold bug. Have some metal but go both long and short the derivatives - including stocks.

1. Gold is a Currency:

That is true for most of the world. A currency just has to be a medium of exchange that is widely accepted. Gold fulfils that.

2. The price of gold cannot fall, it can only be manipulated lower:

Of course it can fall, just as any other currency or commodity does. Which cabal should I have put on my hit list when the $AU fell to 60c during the GFC? Which cabal should I complain when copper falls such that mines operate at a loss?

3. If the price of gold is rising, it is doing so despite enormous and desperate efforts by manipulators to prevent the rise:

Same rule as number 2.

4. The world MUST return to the Gold Standard one day:

Maybe yes, maybe no. It is currently a reserve currency and has been the most enduring of them all. Who knows in the future how favourable it will be in the pecking order of reserve currencies.

5. Central Bankers are printing money relentlessly, and this can only drive Gold prices higher:

While there is no gold standard that is true. Credit expansion in the East due to expanding US debt has led to inflationary pressures there. During the development of the East gold has risen from $250 to where it is today. I'm not sure about monetary inflation without price inflation.

6. Gold works whether the economy is good or bad:

Wrong. All currencies and commodities can move independently from headline economic indicators for a large number of reasons.

7. Gold will survive after the world economy crumbles:

Yes it will. I doubt the world will crumble, but if it does I will accept gold as will all my neighbours. I'm not going to carry a sack of rice to the store to buy a carton of beer.

8. Never admit that Gold is essentially a sucker’s bet:

Like anything, you have to play the trend. Pre 2000, gold was a dud after the 80's bust. Since then, gold has given privileged lives to many.

9. Gold is a rejection of government, and their control of fiat money and finance:

We will always have governments. Gold is not a substitute. It is a metal.

10. All Gold discussions must contain ominous macro forecasts:

What financial commentary does not involve speculation? Hardly unique to gold.

11. Gold is always rallying in one currency or another:

Gold is one of many currencies. It is volatile so it always has a chance to be the best or worst performing.

12. China & India know the value of Gold; the Western world does not:

Without a doubt the East think of gold differently to any clown reading Wikipedia in Sydney. It is a form of financial security that defies regulation or lack of it.


So I give your rules 4.5 out of 12 Infose. No doubt others will differ. Now can you keep them in your prayer book and try to come up with something useful to troll with outside of Wikiland.