Thursday, June 10, 2010

A Golden Benchmark of Stupidity.

I love the commercials selling gold coins.

Properly understood, they might articulate the dumbest argument a commercial has ever made. Let’s overlook the fact that the value of the coins they are selling in terms of the weight of gold is usually less than half of the value of just the gold itself (i.e. you could just buy or invest in gold directly and not immediately lose half your value). We will also ignore whether there is a conflict of interest with Infotainment personalities, err “news journalists” promoting investing in gold as a smart strategy while being directly sponsored by gold hawking businesses. No, we will consider the argument of the commercials themselves.

We will use a Rosland Capital commercial with spokesman G Gordon Liddy as an example.

Proposition 1: Beware! Because of the failing economy and bad government decisions, your money is getting to be worth less and less. Soon it could be worth next to nothing!

Proposition 2: Gold, on the other hand, is stable and retains its value no matter how bad things get. Gold will probably go way up in value. Gold is the perfect way to weather any economic storm.

Conclusion: So, would you like to give us some of your volatile worthless money for our extremely valuable secure gold?


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