Treasure of the Sierra Madre

No, not the movie yet. I still promise a review later this year.

This is about those awful times when people get back to me with, “Oh, you were so right. Why didn’t I listen to you the first time around?”

Image from Wikimedia.org

OK, I don’t get many of those. Maybe someday.

Anyhow, a few weeks back I posted on gold fever. In the movie the old prospector explained why gold was so valuable. It was because it was so hard to find, and once found, it was so hard to extract from the earth. In the same post I chided people for investing in gold, whose main value seem to rely on people’s belief that it was valuable.

So, this was bound to happen:

A dizzying price plunge took the shine off gold as a perceived safe haven investment and could even lead to more gains for stocks as investors seek alternatives. This morning gold futures rose $30 an ounce after yesterday’s loss $140 an ounce loss. The 9.4 percent decline was the worst day for gold in 30 years.

Yes, folks. Reality sometimes does set in. Gold will attain true value when industrial requirement for the stuff begins to exert a stronger pull on the available supply.

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