Does gold have some sort of magical properties to retain its value?

[richardhutnik]

Player2 said:

Kasz216 said:
No one said gold doesn't have bubbles. Just that gold is resistant and will never be worthless and always retain some value.

Don't be shocked if gold recovers actually fairly quickly.

Afterall the silly rise of Bitcoins more or less shows how much people trust paper currencies now.

This. Look at what happened to platinum recently:

Gold is safer than platinum, but it's not inmune.

 

Also gold makes awesome paperweights, it's one of the densest elements known :P

People go for metals and other commodities when they believe there is a spike of inflation to happen.  Thing now is though, all that money bring printed by central banks is going into a debt moneyhole and not getting out in the economy at all.  There is little stimulus.  And because prices are governed by expectations, people aren't expecting hyperinflation, so thys they are dumping the metals and commodities.  End result could be that you have a 1% of 1% who ends up owning all the debt and then grabs up all tangible assets in an attempt to get them.  They end up gaining the world, but killing the economy in the process.  Assets not in motion aren't worth much, only to individuals who presume that there will be a demand for said assets down the road.  But if you have masses falling way beingd, they won't demand the assets, they demand things to survive with.  Since  you can't eat gold (unless you go to some fancy smanshy chef who does weird), you will take essentials for survival.

All aboard the crazy train everyone...