Originally Posted by Fedaykin
Gold drops to near $1200, still falling fast. Down 40% in the last 6 months. Gold speculators and retailers rake in the dough. Regular Joes conned into buying hyper inflated commodity get screwed, as always.
This is why I think the people who invest in gold are generally deficient where it counts.
It's not that gold is a bad investment, per se. It's that most of the people who invest in gold are doing so because of some irrational fear and as insurance during a time of a barter economy, presumably at some undetermined time in the future.
Forget about whether or not gold will have any actual worth in a true barter economy (I for one think it will be worthless, considering it has no real value other than it looks shiny).
In order to invest in gold as insurance against a collapsing economy, you have to be one of those people who believes it's inevitable. That means that until the economy actually collapses, you're going to keep buying, and you're never going to sell. Like you said, it's the speculators who are making the money, and they're doing it on the backs of people like baja, gaff and several others in this thread.