Gold Prices Dropping

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Except that gold isn't the standard, because people haven't been ina gold standard for ages. One could more credibly claim that silver, and not gold, has been of greater importance to the economy of the world. Qing China ran on that stuff. Today the world runs on paper currency, whose ability to be transferred in small exchanges across the world has bypassed the need for gold ina day to day basis.

There's a good reason why gold is a reserve. It's used in times of crisis. However it's clear that its value has been eroded thanks to the illogical and destructive campaigns of Glenn Beck.

I would say that fear-mongering has a larger part to play in this than you would suppose.

Do you even know how the richest people on the earth deal with anything? Why on Earth's name would anyone want to put their faith in to anything whose stable and very high value traditionally disallows it from being used in investment or even earning dividends? I doubt that Bill Gates has even a modest store of gold. I think he has multiple currencies hypothetically, but you'd be a fool to think that anyone in Forbes would ever want to keep a large store of gold.

It's a deadweight on your investments because all it does is sit there and not be used in any productive activity. That makes it perfect for Governments, whose finances are often helped and improved by having some form of stability and whose goal in financing itself has been to avoid making risk, but for rich individuals Gold is a literal deadweight, unless you are in the Gold industry, at which point you sell it and don't keep it.

Rich people diversify. Naive people buy tons of the same "magic bullet".

http://finance.yahoo.com/news/gold-slid ... 00668.html

The precious metals market if often "massaged."

If the masses knew how unreliable paper money is for preserving wealth, you'd not be able to find any to buy.

Gold & Silver are insurance not profit-makers.

You buy insurance for the worst case scenario.

Plus, they are fun to collect .

True enough.

Precious metals is like a game of musical chairs. It's your effort to make sure you have a place to sit when the music stops playing.

The way it "makes" you money is if you buy/sell with market fluctuation and not actual market value.

If the currency implodes and I have 1,000 ounces of pure silver, I can still obtain what is worth 1,000 ounces of silver, but the currency that would have once bought me 1,000 ounces of silver might not buy a single peanut.