Submitted by tim m., Aug 27, 2008 13:54

Two things: 1) Most, if not all, of us in the US get paid in dollars, so why would we care what a homes value is in gold? Measured in gold, our paychecks are dropping in value as much as our homes. 2) Have you not heard of the commodities bubble? If not, you will soon. Gold has no more intrinsic value than condos, wheat or technology stocks. It's worth whatever people are willing to pay for it at the moment, just like dollars. Since the housing market has lost so much steam, people are scrambling to put their money into gold and other commodities that seem safe - just as real estate seemed safe five years ago (remember when we all said "they aren't making any more land, so real estate prices only go up"). Just visit any Barnes and Noble and count the number of books on the shelves with title's like "Purchasing Gold and Other Commodities for Dummies." Once you see more than one of these books, get your money out of gold.

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