From Louis James, Editor, International Speculator:
“You’re crazy, buying gold now!”
That’s what one of my students said to me in the summer of 2008. I was teaching one of my seminars on entrepreneurship, that time in the Republic of Georgia. Gold had risen for seven years and was trading around $800 per ounce.
This student was a very bright Azeri fellow, business savvy and economically astute. But also a product of his education. He said it was foolish to buy gold, which had no real use, when it had become so expensive.
I told him, and the whole class, to watch what happens to gold when everything almost everyone thinks they know about economics gets called into question.
They had that opportunity a few months later, in the crash of 2008.
As you may recall, gold initially took a hit. There were margin calls and fund redemptions left and