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To: wendy1946
Again the problem... the value of gold is entirely based on psychology and psychiatry and not on economics and physics. The danger is that the world could wake up to that reality.

Dream on. You can stick with Keynes and the Experts in Washington. A Psychological aberration that has persisted universally for in excess of 5 millennia is probably at least as reliable as the wonderfully rational fiat money of the government experts for so long as there have been governments and has been very reliably debased to the destruction of systems and empires over and over again for almost that same period of time.

13 posted on 01/05/2011 11:03:21 PM PST by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: arthurus

One could argue that gold is valuable because people like it, rather than people like it because it’s valuable.

Throughout recorded history, people liked to wear the pretty, rare, yellow metal.

The psychology involved is the psychology involved with making jewelry out of it. If people didn’t find gold pretty anymore, that would effect the price of gold.


25 posted on 01/05/2011 11:56:08 PM PST by truthfreedom
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