Maybe people are smarter than we give them credit for being?
And what do gold bugs convert their gold into ? Fiat money so they can actually buy something with it. Gold is simply a commodity. People who buy gold don’t understand a real economy or the money that it trades with. Gold can be used as a form of money but it’s a really inflexible currency and therefore a really poor one. If the economic system truly breaks down then gold is as worthless as the paper money is. Let’s hope we don’t get to societal collapse and a barter economy. Most will die if it does come to a barter economy and gold won’t save you.
Gold is the "gold standard" for the preservation of wealth. In normal times, for the past hundred and fifty years or so, it has become moribund as a day-to-day exchange for a number of reasons. However, if it is so worthless, why is so much of it held by the big boys and when there's a margin call, what is sold to pay it off?
