In this morning’s gold news, the metal appears to be drifting — and the underlying conditions are iffy. So probably… no gold trading today. Let’s turn to the mailbag for inspiration.
One popular question for your friendly Gold Enthusiast is “Why are some people always so bullish on gold?”
There are of course many answers to that. In terms of gold news, the most common answers revolve around its store-of-value function: Basically, gold is scarce and it’s verifiable. So it is both valuable in its own right AND we can tell gold apart from imposters.
Most money these days is true “paper”, and has value only because people agree it has value. What it is made of is not rare, and central banks seem to like to make ever-increasing supplies of it.
Related: Is Gold Nearing a Crash? DETAILS
That is the biggest problem with “cash money” these days — the flood of it unleashed on the world by central banks. Thankfully things aren’t as bad for paper money in all regards though.
To help with your education about “the argument for gold,” today’s featured article runs through the economic argument using lots of pretty charts, and good logic. After reading this, you may wonder why we ever went away from the gold standard…
Related: Is Gold Supply “Less Than Expected?”