True, but if you sell it at it's peak for pretty money, you can later use that pretty money to buy more gold! Just find it strange that people have confidence in the economy to recover when China is slowing down big time.
There are many nay sayers that say gold is worthless, just pretty color metal while stocks are worth more. They say that have more faith in human capital and ingenuity vs. a lump of metal, but that author had it wrong. I do have faith in human capital, sustainable human capital, and before that stock has value it has to be transfer through the medium of money. It is not the lack of faith in the company per se, but lack of the form of currency.
One thing the author who made that statement also failed to take into account is that stock companies can go bust, Enron, World Com anyone? Dot Com bubble bursts. Gold can drop a lot, even maybe 90% of the it's value but it will still have value in the foreseeable future.
Looks like it was the FED placing a huge short sale. Also don't confuse paper gold with the real thing. Spot price is set by the buying and selling of paper stocks, and is vulnerable to speculation just like any other stock. those that hold actual physical metal all have very strong hands at this point and are not letting go. China and others are buying up physical hand over fist. America has pinned everything on the ability to keep the dollar strong, but with all the printing that is going on they can't do it forever. If you own a dollar bill you really hold a Reserve Note which means it is a debt that someone else owes you. Everyone has to have faith that that debt will be paid. If they do not they will not accept your dollar (a promise to pay) for the actual goods they are selling you. Gold/Silver is an actual commodity that you can hold in your hands. An item, not a promise.
for those that are interested in this type of thing:
i dont have any stock in gold much less have any gold.and unless there's a use for gold after a economic collapse or what ever..there'll be no use for it..one good use for it is.elelctric wireing,but even then..only if you can make your own wireing and insalate it.