Gold Doesn't Protect You- Unless Everyone Else Thinks it Does

“Find the trend whose premise is false,” says George Soros, “and bet against it.”

Gold bugs seem schizophrenic. Gold prices are manipulated downward; buy more gold!  I think the recent fall in gold has to do with increasing recessionary conditions and "disinflation". But when people realize that real money (financial reserves) can not be replaced by credit and debt then the price decline will reverse.

Imagine you are a major holder of new Lexus cars. Imagine you are in financial trouble. The market for Lexus cars anticipates the upcoming supply. Prices of drop....