i'm thinking gold is 3/4 through its total move up before it heads down.....one thing i find funny is that all these people are saying buy gold because fiat money will be worthless, but if that were the case i don't think you would want to be alive, reason being do you think your supermarket/gas station/utility has gold also in small enough amts to exchange services up and down their supply chains to continue to provide their services?
Its a good thing it only costs about 1/2 of 1% to insure your property in your home. 20 oz of gold(about $25k dollars) under the mattress can be insured for about $125 per year. You put 25k dollars in your bank, you pay about 3-4% per year in inflation(or more!) So basically it costs you $750-$1,000 per year to keep $25k in the bank.
Supermarkets didnt exist 100 years ago. I'm sure food will still be for sale, we will just have more small business owners.(How about that! Walmart and food4less will lose market share to mom & pop) People who are addicted to internet/TV/driving their car will have a bit of adjustment, but I would hardly think thats worth killing yourself over if you dont have those things. In the end, they will probably be happier.
Gold is backed by it's commodity value. The most important is that it preserves it's value independently of paper assets. It's as volatile as the risk itself.
I'd like to see you re-evaluate that statement once all of these people try to take physical delivery of the gold at once, only to realize that the counterparty cannot deliver. That would be counterparty risk.
I am a coin collector, so I certainly don't mean to sound like I'm bashing gold, but I think it is funny that all these guys trying to sell gold talk about how great gold is and how horrible US Dollars are, yet they will happily trade their gold for your US Dollars! Just something to think about. JJacksET4