It's not the apocalypse but the gradual impoverishment

Matthew Perry writes a great opinion piece for The Spectator explaining the mindset of people who are still buying into gold even after this year's big set back.

Despite the recent drop, many are seeing it as a sale. Orders at the Perth Mint are surging. The US Mint is suspending sales of its one-tenth ounce American Eagle due to a depleted government inventory.

Gold suffered a $200-plus decline that began on Friday 13 April and dropped to multi-year lows of $1,326 an ounce this month. But Matthew Paris explains that he and other gold buyers are looking further down road:

The immediate panic that followed 2008 has passed. People are no longer switching on the news every morning to find out whether the global economy (and with it their world) has ended. Nor do they expect other people to believe this, sparking a hysteria that could make the fortunes of those with bullion. They think that, on balance, next year will be rather like this year; as will the one after that. No great urgency attaches to personal financial decisions.

No apocalypse, then — or probably not. Just a gradual, bearable, steady impoverishment in a world where savings linked to the value of paper money languish. A long-stop based on mild, long-term, chronic and half-conscious pessimism: a plan-B pension that the politicians can’t touch.

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Image by bark