buffet's bursting bubble, page-12

Hi Champ,
Enjoy your posts

What concerns me - Gold is a store of wealth - but for who?
Only damn rich people can afford to sit on pile of metal big enough to make a difference. The average USA citizen over 55 is damn near broke and can't stop working. Is he going to rush out and buy if gold goes over 2,000?

Machine over there is corrupt and broken - it stinks - I totally agree on that.

Even if the Fed wants to create inflation - looks like it is not working that well.
Private Debt is not cool anymore, even if it was it is not available - even after all the printing.

I just don't see that people will rush out and buy gold when what they need is food and cash-flow, Asia sure, plenty of vain whako's over here to support demand.

Central Banks, sure that makes sense, Money "is an agreement", and the Western World has not kept its side of the bargain, so hedging into a different vehicle makes sense at a certain cost. But I don't equate the vampire Squid impoverishing the middle class with a rush to gold, not unless inflation and not deflation becomes an undeniable trend, and even then, I would rather own a veggie patch than a few ounces of gold.

That said - I do have plenty of exposure to Gold, mainly because I think the juniors are undervalued and Gold does not have to go parabolic to correct that. If the Gold bulls are right, I will buy a bigger veggie patch.

Perhaps only time will convince me, It is after all, a damn difficult thing to understand - enjoying some stuff from Steve Keen on Debunking Economics, not exactly helping me to apply binary logic though....