Dougie Gold is a commodity not money.It can be used as a defacto...

Dougie

Gold is a commodity not money.

It can be used as a defacto currency if people are willing to accept it as payment, which many individuals around the world will, however it's value as such is only by agreement.

I am a gold bug but not on the currency standard side of the fence. Those who are, are on the wrong side of a very very long bear. There is no magic to this, gold is simply not a practical means of monetization. The fiat system is because it monetizes all product not just one very small sector.

Gold may well spike to US$3k plus, and I'll be very happy if it does, but that doesn't create a mystical new pedestal for it because if you didn't have any when the peak started you're going to need to find US$3k+ to get an oz. Since it's primary value is in jewellry, demand will react to curtail price. Further it's secondary value is as a hedge against inflation for those who go to gold for that purpose so when inflation comes back so will that factor.

It's simpler for everyone to recognise that there is a bull market for gold without any of the mystical stuff.