I have a perverse interest in reading about crazy people, whether serial killers or end of the world types. One group which has interested me over the past 2.5 years are the gold and silver bugs. They fervently believe that fiat currencies around the world will collapse when hyper-inflation strikes leading to the re-introduction of the gold or silver standard.
The predictions for future gold prices are insane and arbitrary. One blogger/investor thinks $5000 an ounce is logical given the current price of $1500. Though old, this forum on burying gold in your backyard is good for a giggle.
All of that brings me to the conspiracy theory about the financial terrorists at J.P. Morgan being short 3.3 billion ounces of silver. While obviously a farce, the story is popular among gold and silver bugs. A blogger, Kid Dynamite, did a good job of explaining why the massive JP Morgan silver short was a hoax.
My own personal opinion is that people are going to lose their shirts on gold and silver. Gold has zero value beyond that which another buyer assigns to it. It pays no dividends and is not used for any industrial purpose. In fact, it's one of the few assets with a guaranteed negative cash flow (excluding sale) due to the costs of storage.
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