Quote:
Originally Posted by The Demon
The fact that they were used and therefore had monetary value. Also, I never advocated a pure gold standard, only a fractional reserve commodity standard.
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Which in earlier times I agree was the case. I don't think that is true today -- not in the developed world anyway.
There is no doubt that precious metals still have a value premium placed on them when times become uncertain. This uncertainty creates a demand and in a global economy the level of uncertainty that is still in the air has gold up in all currencies. So, contrary to what many people are fixated on, it is not completely US$ dependent. Personally, I think that while it still has years left to work higher, the opportunity in metals will pass. After all, they pay no dividend or return, so it is purely an asset appreciation play.
And I never made mention of what you advocated, so I'm not sure why you slipped that in there.
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