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Gold - a six thousand year-old bubble
Gold - a six thousand year-old bubble November 8, 2009 6:02pm Gold is unlike any other commodity. It is costly to extract from the earth and to refine to a reasonable degree of purity. It is costly to store. It has no remaining uses as a producer good - equivalent or superior alternatives exist for all its industrial uses. It may have some value as a consumer good - somewhat surprisingly people like to attach it to t
Submitted by
tschuma417
11/9/2009
HyperLink play it email it
Homer
11/9/2009
Homer is playing it
Long5.64%
I am playing this headline with (GLD). What do you think of my plays?
 
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tschuma417
11/9/2009
tschuma417 is playing it
Long5.57%
I am playing this headline with (GLD) because "Although in most of the overdeveloped world (except the UK), deflation is the immediate threat, there is a medium and long-term threat of much higher inflation in all countries with enlarged central bank balance sheets and the prospect of large future fiscal deficits. The great advantage to investors of gold is that, although it is not intrinsically valuable, it is very costly to increase its stock. The tap can be opened at the drop of a hat for fiat paper and electronic currency. The tap produces never more than a trickle in the case of gold."
 
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