Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

“In the country of the blind the one-eyed man is king.”     Erasmus

July 27, 2011

Quote Of The Day

by Brad Warbiany

Is Gold in a bubble? The Economist thinks so. But instructive is something they wrote back in 1980, just before the culmination of the last major gold bubble:

In equity markets, there is much truth to the saying never sell on a strike. In the gold market, which has become in some ways the reverse image of equities, a suitable variant might be never buy on the end of the world. You cannot, after all, take it with you.

A year from now, I’d think that gold will be well under $1,000 per ounce, or as high as north of $5,000 per ounce. That’s not a recommendation to buy gold, however. If it’s north of $5,000 per ounce, that means that things in the United States will have gone so horrendously wrong that owning the gold at that price will be little solace, as you very well may not even want to trade it for dollars.

I learned years ago to never bet against my alma mater, the Purdue Boilermakers. Even if I win my bet, I’m still unhappy with the outcome. It’s much the same with gold. Betting on the end of the world sucks if you’re wrong, but sucks even more if you’re right.

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5 Comments

  1. The best advice I’ve ever heard for guarding against rampant inflation is to stockpile liquor. It doesn’t go bad, it is always in demand, and if rampant inflation does not occur you can enjoy it yourself.

    Comment by Phil — July 27, 2011 @ 9:58 am
  2. That’s why I homebrew my own beer. When society collapses and America turns to cannibalism, I know that I’m a meaty sort of fellow with some fine marbled fat for flavor. But nobody eats the guy who knows how to make the beer!

    Comment by Brad Warbiany — July 27, 2011 @ 10:02 am
  3. If you believe the end of the world as we know it, no one is going to want nor will they be able to afford your gold. instead stockpile whiskey, cigarettes and guns.

    ATF should be a convenience store!

    Comment by Jack Stevison — July 27, 2011 @ 10:39 am
  4. A friend of mine used to call it “The Armageddon Portfolio”: A bag of Krugerands and a .45.

    Comment by Akston — July 27, 2011 @ 11:47 am
  5. It won’t be the end of the world (as we know it)..
    The world didn’t end in 1913 or 1971 when the monetary system was overhauled.

    But gold will protect your wealth quite well.

    Comment by Jono — July 27, 2011 @ 2:18 pm

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