Gold Smold

The gold bugs are of course freaking out because the present spot price of gold would seem to vindicate their position.  I will grant that the price of gold reflects a fundamental uncertainty about the future.  But does anybody seriously believe the future is paved with gold.  In a truly apocalyptic future people will be trading goods and services directly.  The second the world is stable enough to trust that your hoard will be safe from the barbarian hoards is the second that fiat money and all its conveniences will be on offer.  Security requires a state and states (and capitalist ones at that) have very little interest in a specie based regime.

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