tag:blogger.com,1999:blog-8817171247555815363.post8283403679195050406..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 13/12/2012: Some thoughts on goldTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8817171247555815363.post-57005693273921935972012-12-17T01:33:50.159+00:002012-12-17T01:33:50.159+00:00Constantin,
I have developed a thesis over a len...Constantin, <br /><br />I have developed a thesis over a lengthy number of years, which I might label, the bad apples in a basket theory. <br /><br />It states, that when one influential member (by natural disposition), of a group decides upon a strategy of hopelessness, their natural aggressive or leadership instincts become targeted at those of the group who may intentionally or un-intentionally dare to contradict the impulse towards the hopelessness strategy. <br /><br />This thesis also operates in reverse. I.e. Where the influence member of a group decides on a euphoric strategy, similarly, members of the group who intentionally or unintentionally dare to contradict the instinctive impulse also become singled out as targets for consistent and relentless attack. <br /><br />In other words, it works either in the upward or downward part of natural cycles. The individuals who hold these tendencies in a marked way, and pursue their behavioural norms no matter what the cycle does. It lends great stability to their lives, and allows them a luxury of making some 'meaning' from the cycles. <br /><br />Gold, is the flip side of the boom cycle, which enables people to express a belief in a strategy as strongly, as they would do when buying beyond their means in a rising part of the cycle. <br /><br />I am unsure of an established theories in this regard, which may combine aspects of economics cycles and psychology. I was wondering if you had any further thoughts on this, which you would care to publish in a later blog entry. Brian O' Hanlonhttps://www.blogger.com/profile/09185216066875647495noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-27236013119115515082012-12-15T13:47:51.921+00:002012-12-15T13:47:51.921+00:00I only wish gold (physical possession) was overval...I only wish gold (physical possession) was overvalued or a bubble, because that would mean that:<br /><br />The euro, sterling, usd and other currencies will not remain volatile.<br /><br />Governments could not burgle other savings/pensions etc. <br /><br />Financial institutions could not sink with your savings on board.<br /><br />Paper investments (e.g. bonds, mine certificates, ETFs etc.) cannot be destroyed by a run on them.<br /><br />Unfortunately this does not seem to be the case.<br /><br />If that is true, an allocation of 5-10% to gold seems overly cautious.<br /><br /> Kieran Magennisnoreply@blogger.com