it's going down the toilet, page-135

Cyn

"And no, gold is not a currency."

Gold could be a currency, but there are two major problems with it:

1. It's supply doesn't vary with the change in the level of economic activity; and
2. It is appalling inconvenient to settle with.

The idea of gold as a reserve currency is ludicrous at a practical level.


That doesn't mean investors shouldn't buy it. It is likely to become more scarce relative to the investment dollars available to buy it. But this rally is likely to be more ponderous than explosive.

Cheers