Zeev's Turnips Patch-No Politics (ZEEV)

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Lee re Gold - Yes, but my main point is that Gold will not necessarily retain value. There is this idea that Gold is a store of value, that its nominal value will increase as currencies lose value. That just isn't necessarily true. If all fiat currencies lose value, which appears to be the goal of the central banks (and one that they are pulling off fairly well), then the $US nominal value of gold, which is being determined by the ratio of the $US to other currencies, will stay steady. This means that the real value of Gold will drop.

Then, we would need an inflation-induced panic to push up the price of Gold. This panic is something the central banks are determined to avoid, and they likely will be able to do so for many years...