All that glitters is not _______.
Please, you fill in the blank.
I’ve heard all the arguments touting gold as the next currency; nevertheless, it will never happen.
However, I do strongly endorse a gold backed currency because in my opinion returning to the old days of the dollar backed by gold is the only solution to a stable monetary system.
No amount of wishful thinking (remember, hope is not a strategy) will create a stable and growing economy.
It seems those supporting our current fiat currency have always acknowledged that something else, not the lack of a gold backing, was the culprit for the ultimate failure of the dollar.
That argument will surely continue.
On the other hand, one issue pertaining to gold that I believe is never subject to argument, but always creates deep discussion, is the topic of parabolic movement.
Over the past ten years, gold has experienced a steady upward movement, some would say moving from the lower left corner to upper right hand corner, very bullish.
In the past several months the move has been very dramatic and extremely frenetic which could be the final parabolic blow off. The television advertisements have been trumpeting “now is the time to buy,” while astonishingly even vending machines are available to the mass public in order to purchase the shiny valuable metal.
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Most excitined are the daily pundits who trumpet gold to $4,000/oz. and $5,000/oz. and beyond. When the pundits and the general public are queried about the parabolic move, the response has been “it’s different this time” or “you just don’t understand” and best of all “you’re a fool if you don’t get on board right now.”
I have spoken and written about the bones and ashes of those who bought into the theory that somehow “it’s different this time.”
The list from most recent to historical past is significant and includes the financial and credit crisis of 2008, the housing market in 2007, the dot-com implosion of 2000, the Nikkei of 1990, the savings and loan crisis of 1989, the depression collapse of 1938, the roaring twenties and 1929, the South Sea bubble of 1720, and the tulip mania of the 1630s.
It is absolutely amazing to me that people forget the lessons of the past. Those who choose to ignore these lessons are also doomed to become bones and ashes.
All that glitters is not _______.
John Ransom | Create Your Badge
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