Gold

I was talking to Sparky, my banker, at our weekly meeting. Yes, I have become an Allegory: old retired guy checks on his investments every week. I have the Tea Party to thank for it, them and Greece, I guess... and Dennis Hastert, Tom DeLay, and all the Republicans in Congress from 1996 to 2009... especially Phil Gramm, don't forget Phil Gramm, the Grim Reaper of 2008, who after a dip in the cement pond, went up the Hill to ensure them thar  Sweet Virgin Derivatives remained unviolated by regulation.

Whew! Sorry. Get carried away.
Anyway, I was talking to Sparky down at the Grangers' Bank about stuff, and he mentions that in the last weekly cycle of market-up market-down, the price of gold declined by $300 during the down cycle. That caught my attention.
I am sorry to say that I have been dodging the news recently. Every time a newsie shoves a paper in my face and yells "Extra! Extra! Read all about it!", I run away to some place of refuge. I have stopped contributing to the Old Newsboys Foundation for poor kids, since I suspect these old newsies are recruiting new newsboys to aid them in their nefarious efforts to rub our noses into the mess of news we made while our owners were out.
When Brian Williams voice comes on, that's my signal to switch to Family Guy.
So this gold business took me by surprise.

Bingo! In 2 seconds, all the tedious rigamorole of " Buy gold! It's a safe haven!" and all the clap-trap about sound investments in something intrinsically valuable (!!!??) while liberal politicians undermine the $ all blew up, and rained down around me like chaff.
Gold has no intrinsic value.
It's a speculative investment.
Just because there has been a pattern for a while of stock market down-gold price up does not mean there is a real cause and effect relationship that will continue on and on forever. In fact, since it is speculation in a commodity, what goes up will most assuredly come down.

Exactly what is the status of the various Righties who have been on television pitching gold? How can any commentator worth his or her salt actually shill for speculation in a commodity... with the implied rationale that speculation in gold is better for the individual and better for the country?... and it is "better" in some sense far beyond whatever good may accrue to speculating in, say, cocoa or pork bellies?


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