Thursday, October 8, 2009

Gold discussion

I previously shared a video of Peter Schiff claiming gold was headed for $5,000. Below, Joe Najarian gives that a 10% probability.
The thing that perplexes me is gold as the "hideout" if the world's economies fall apart. Gold lovers point to the lovely attributes of the metal, but I worry about the consensus view of it. I think it's a comparable situation to the US dollar as the "reserve currency." Well, we only enjoy that status until we don't -as in, people might decide there's a better option. Gold could be vulnerable in the same way, as people may find another precious metals to take its place.

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