Benjamin pontificates on existing gold market theories, such as the price of gold being artificially held down to prevent it from becoming a currency. He also discusses the theory that all gold that has been mined is being actively traded one way or the other. If you subscribe to the first theory, it is time to buy, and if you subscribe to the second theory, you are probably neutral on gold. Benjamin also points out that gold can no longer back the monetary supply, in part because there is simply not enough yellow metal in the world to adequately support today’s economy. Noting that he is neutral on gold, Benjamin hopes for the sake of the gold bugs that their conspiracy theories bear out. For everyone else’s sake, he hopes they are wrong, due to the frightening consequences that would surely result from the reinstatement of the gold standard in current conditions.
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