It takes four tries before this gold skeptic can buy something with bullion
Felix Salmon, blogger for Reuters and gold skeptic, decided to find out if gold really is currency and went shopping with one gram of bullion in New York City.
"We are going to find out if I can spend this $52.86 on something real."
Salmon was turned down after trying to purchase a case of beer, stamps and a toy. (One gram of gold, on first glance, really doesn't look like much of anything so it could partly explain people's hesitancy.) On his fourth try Salmon was finally able to purchase some lobster rolls.
The challenge was a result of a debate that Salmon had with the Economist's Matthew Bishop, author of In Gold We Trust?
“As the gold price goes up, it tells us we should worry about why it is going up, and it tells you something about the value of paper currencies. And what it tells you is that governments are taking a lot of risk with our currencies right now,” said Bishop during his debate with Salmon.
Joe Weisenthal at Business Insider says the video contains proof that gold is in a bubble:
But the crazy part is right in the beginning. Felix goes up to a guy loading wholesale beer, and the guy knows instantly (!) what a gram of gold is worth: right around $50!
When the guy loading wholesale beer knows the price of a gram of gold instantly, you've just got your famous example of the taxi driver giving you stock tips. DANGER!
CORRECTION: Article originally ran the amount as being an ounce. Salmon is actually carrying a gram.