Goldbugs don’t just believe in the fundamentals of gold. They worship at the altar of gold.
The goldbug view represents a market philosophy, a doctrine and a belief-system.
Question it and you incite anger, rage, ridicule.
For ‘non-believers’ this can be frustrating. It’s impossible to have a rational discussion on the subject because goldbugs inevitably intervene with ‘ absolute’ views, none of which are open to adjustment. They stick to those absolutes, even if the facts don’t fit support the narrative.
One might say the following 10 commandments reign at all times:
1) Thou shalt not have any other money than gold.2) Thou shalt not make paper idol money.3) Thou shalt not call bullion a relic ever.4) Remember the day Nixon broke the gold standard.5) Honour thy gold reserves.6) Thou shalt not suppress the gold price.7) Thou shalt not borrow gold from another man.Thou shalt not steal another man’s gold.9) Thou shalt not bear false witness against gold or talk down gold.10) Thou shalt not covet another man’s gold.
While FT Alphaville is sympathetic with some of the points raised by goldbugs, we feel what gets in the way of constructive debate is the goldbug’s utter and complete hatred of the so-called paper money system.
Yet the fiat system has a lot more going for it than you might think.