RE: Difference of opinions Hrattle ...the short players were causing serious damage to Mega...
hope21 I don't recall exactly what garbage you posted about shorts. It was wrong. Shorts didn't damage MGP - MGP did that themselves by doing an unnecessary PP and then dropping Headway. Shorts took advantage of these events and made good money. They were smart.
The same story you are trying to us all about Gold
POG has nothing to do with shorting MGP - the two have no connection. What I am telling you about gold is that a spike now could be signalling a significant fall in equity markets - this is where gold is most effective as an investment. Your post agrees with me (but your reason is a tautology - you have basically said people trust gold because they trust gold - which is actually as good a reason as any). Why else would you buy gold if you thought equity and debt markets were going up?
currencies need to be backed up with something to maintain its value
Do you know what "backing" means (as you have used it)? You are talking about fixed convertibility not backing. Currencies are backed by the laws of the country - they are legal tender. They are not convertible to a fixed good or service - they float - more correctly it is a managed float as all central banks do intervene. Gold is not backed by anything (most would say it doesn't need to be as it is gold - another tautology). Gold, just like currency, is not convertible to a fixed amount of anything. Fixed convertibility is an archaic money system that has been proven not to work, especially in our global market place. As an investor in gold and gold mining stocks I am VERY HAPPY that gold is neither backed nor has fixed convertibility.
Hope21 you spout words that you do not understand and use arguments that come from self-interest self-proclaimed analysts who have no clue what they are writing about (I am trying to be polite).