What i want to know is:
If the economy is so bad like it has been why has gold stayed below 1700?
Just seems that if it was such a good hedge it would be higher.
They can lower the price at will by flooding the market with "paper gold and silver." It creates the illusion of more gold and silver than there really is, thus lowering the price. This, however, can only be carried on so far.
Professional investors don't deal in physical gold mainly because of the buy/sell spread. Rather, they deal in securities tied to gold. Nevertheless, these instruments set the market price of gold no different than if it were physical gold. Try selling your physical gold for anything above the "market price" and you'll get laughed at.
So if the big crash comes in our lifetimes how much will gold be worth? Answer, there won't be a fixed price. If you're starving to death how much gold would you give for food? If you need to defend yourself how much gold would you give for a gun or ammo? Being it has little use in such a scenario, no one is going to show up at your door desperate to trade goods for your gold.
