Hi Ron,

It is a well written article. I only hope that more people read it and understand what is happening around them.

In India, even an illiterate person (the numbers of which are reducing every year) knows the "value" of possessing or investing in gold if not the latest price. Gold is embedded in societal and cultural mechanisms. It is a no-brainer. It is probably acquired because of inflationary policies in the past. Even if most people don't know what economics is they know what rising prices are.

I've also seen people mistakenly quell this argument behind money printing and linkage to gold by saying that there is also the velocity factor involved in the quantity theory of money. That if it reduces we are still ok. This is happening in the US right now, if I am not mistaken. But people forget that its only for the short term. In the long-term the money percolates through the economy.

You might find these 2 links interesting:

A piece on how gold has performed in India over the last 30 years vs. inflation and regular fixed deposits held in banks.

http://www.caporbit.com/chidambaram-gold-investment-india/

A collection of charts that illustrate the debasement of the British pound over the last 250 years. They don't speak, they shout out loud.

http://www.parliament.uk/documents/commons/lib/research/rp2003/rp03-082…