Gold not going to perform if people do not believe it will, page-6

My main argument point for starting the post is to demystify precious metal able to outbeat inflation. Your point is valid but lets not forget market crash will not always lead people to gold. People always talk about real money, but what is real money, they used history to explain what real money is. But I think this is incorrect in many ways. This is what I think.

Money is a medium of exchange; a unit of account; a store of value. However, real money is the ppl perception of 'what is money'. Under normal condition, gov backed paper is real money, ppl will not accept gold for your car; hyperinflation when ppl distrust paper, gold and silver is real money. Disaster where people fighting for food, anything can eat, and use to exchange for other type of food is real money, and under that situation, if no want willing to accept gold or any precious metal, then precious metal will not be real money. The main point is, real money, since it is human being willingness to accept something for exchange, then what is real money will change from time to time. Agree? If a crash is happen in US again, however their financial system is intact, people believe their financial stability, then people will rush to dollar instead of gold. Remember, gold do not perform during dot com bubble burst. Gold is performing so good is all because of media. If after dot com bubble burst in 2000, media depicting gold is safer than dollar, then gold will have a little bull run during that time. In other word, gold only able to protect your wealth, if other people also believing what's you believe in, and willing to push up the price to 'protect your wealth'.

And only one circumstance gold will be real money, the total financial meltdown, where none of the fiat in the world people believe in. However, if that not happen in next 20-50 years, you will still be wrong. People like to make far away prediction that if you want to prove them wrong, you cant as they will say they will right one day, and not putting a time limit on their prediction.