> If we all decided gold was worthless as money its value would collapse to something more on par with its value in terms of its industrial uses. If that were

> If we all decided gold was worthless as money its value would collapse to something more on par with its value in terms of its industrial uses. If that were the case, then the price of gold would drop. Demand would decrease and the price would fall. In fact, this happened during the last financial crisis, because of a strong dollar and deflationary pressure. In terms of dollars, gold will always do very well, though. Here’s why. The thing central bankers (they’re really central planners) don’t understand is that markets are forces of nature. You cannot tame this force of nature anymore than you can stop a hurricane. The fiat currency scheme will eventually collapse, because it produces distortions in the market. The key piece of evidence is when the Fed had to print 85 billion dollars last week because the overnight repo rate skyrocketed to something like 10%. The interest rate is a proxy for credit risk. What that tells you is the house of cards is about to collapse, because the market will not allow distortions like negative interest rates or negative yielding debt. It is simply illogical. As a creditor I will not lend someone money and agree to receive less than I originally lent out. Additionally, the real interest rate is probably around 10-15%, and the Fed will continue to need to print money, which will depreciate the dollar (money itself follows supply and demand. Increase supply and what happens to price?). All of this is very good news for gold.