The Ignorant Investor

After reading yet another celebration of gold on another blog, I asked a question that seemed very obvious to me: if the future is so bleak, if the expected financial meltdown so obvious, shouldn't all one's assets be in gold? Shouldn't a person be borrowing thousands or dollars at 6% to put into gold when hyperinflation is just around the corner? Because if what the gold bugs say is true and the "fiat money" of the U.S. is currently worthless in reality, then trading debt in paper for solid metal is a no brainer. Rationality dictates only one course: go gold. All gold. Not taking out loans to buy gold would be like refusing to trade toilet paper for Blackbeard's treasure.

Yet nobody who responded to my comment seemed interested in taking on more debt to buy gold. You can't ask for a clearer signal that they don't really believe in their own bullshit. They don't really think the currency is worthless or that higher inflation is imminent. But they want everyone else to think so, so the shares of gold they already own will increase in value. It's just another variation of pump and dump.