Gold is on another climb. The market saw a giant gain over the last few days in lieu of the Greece bailout. So what does this mean? Is the run on gold justified? My answer is yes. Gold at these unnatural prices simply means one thing, fiat currency is worthless and steadily declining. Paper money printed out of thin air can never hold up against a commodity. As time passes and more government bailouts pop up, more social programs get financed, and more anti-free market tactics are exploited for financial gain; the more all commodities will eventually rise.
Looking beyond this though you have to question if this is being done on purpose? Unfortunately we don’t live in a world of free market forces. We have a market controlled by the banking elite and big government. These forces can easily jack up prices of any commodity (see the summer gas prices). It is hard not to assume that there is coercion and manipulation over the price of the gold supply. These artificially high prices may lead to an eventual bust.
It is very hard for me to argue that gold is not perfect. I feel a commodity backed currency is the answer to all of our problems, however gold prices that are artificial can be disastrous. I am not saying don’t get involved with the gold market, I am just saying be weary of this boom. You have to understand these prices are imaginary. They are based on trade value of fiat notes for solid commodity product. One MUST look at money as a commodity to properly invest. ♥
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