Why own gold? The bubble maker tells us why…

With the price of gold in decline, despite massive central bank money printing, it begs the question why should anyone own gold? Well according to the bubble maker himself, former US Fed Chairman Dr. Alan Greenspan, it is because “for more than two millennia, gold has had virtually unquestioned acceptance as payment”. In his recent article, entitled Golden Rule: Why Beijing is Buying, he goes on to write: “Today, the acceptance of fiat money — currency not backed by an asset of intrinsic value — rests on the credit guarantee of sovereign nations endowed with effective taxing power, a guarantee that in crisis conditions has not always matched the universal acceptability of gold.” In essence, gold is an insurance policy against central banks and governments eroding the value of paper currency.