The Barbarous Relic

Last week, I finally bought some physical gold. I hate buying anything at all time highs, but I think there's a small chance that a mania in gold, much like the mania in internet stocks at the end of the 90s and the one in real estate in the mid-00s, is about begin, and I couldn't wait any longer. I went to a local dealer and bought some coins, paying about 5% over spot.

I'm actually hoping (and believe it's likely) that we're seeing both a blowoff top in the stock market developing, and a similar top in gold developing. I'd like to buy more at much cheaper prices. The mania will come eventually but the next cyclical bear in equities will take gold with it.

While holding in the palm of my hand five digits worth of dollars, I finally "got" it. I finally understood the skepticism about gold being a "barbarous relic". I wondered how something rather bland in its properties could hold so much value. Sure it's shiny, but so what? It's just little bits of metal. Surely the world is mad.

Of course, the counter arguments are easy to make:

1) If valuing shiny bits are metal is barbarism, then what should be make of valuing little pieces of paper deemed to have value by fools and knaves?

2) Gold stands up to the challenge of empiricism. It has been used as money for 4,000 years. The last 40 years are the exception, not the rule.

Share this

While holding in the palm of

While holding in the palm of my hand five digits worth of dollars, I finally "got" it. I finally understood the skepticism about gold being a "barbarous relic". I wondered how something rather bland in its properties could hold so much value. Sure it's shiny, but so what? It's just little bits of metal. Surely the world is mad.

Absatz-fahigkeit, the marketability of commodity goods. This goes up if the commodity is deemed currency, due to a myriad of market factors that Carl Menger has written about. It is the factors you describe as bland that have allowed it to meet the demands imposed upon it by the market; Malleability, durability, luster, etc.

Precious metal - especially gold - is pretty darn awesome if you ask me. I have had the good luck of growing up around the mining/prospecting business out here in the south west, even had the chance to assist with assays and collect ore samples. I love everything about it, from the history of hand turned drills and hammers to the titanic mining operations of modern day that devour massive amounts of ore to remove sometimes less than .08 ounces to the ton.

Good purchase!

J Wilde, for your

J Wilde, for your convenience, a gold bullion vending machine.

my source for gold and data

kitco.com dude, use it

For prior 4000 years 80% of the population were slaves and serfs

It is only in the last 40 years that working class people could get credit without putting up an asset as collateral. Only the last 40 years that the working considered themselves to be middle class.