....it is sometimes referred to as the barbarous relic. You can’t eat gold. Its industrial uses are limited. If someone else doesn’t assign the same value to gold that you do, you are out of luck. For those who predict it will be valuable if society completely collapses, guns and canned goods might come in handier...Here are a few things Davidoff doesn't get (or doesn't want to publicly admit) about gold. It is an alternative to paper money as a medium of exchange. Given that governments around the world have mismanaged their currencies and debt, it is extremely prudent for people to own gold, as a hedge against further mismanagement. Only a small percentage of investors own gold, but the number is growing. That, plus continued paper money printing, is the main reason it is going up in price. I have argued that these two factors could push gold to $25,000 per ounce. People are damn scared, it is not a boom in the sense that people are flocking to gold to make money. They are flocking to gold to protect themselves financially. The argument that you can't eat gold is an absurd argument. You can't eat paper money either (Though it may have an edge over gold as toilet paper).
The commodities regulator, though, could force American exchanges to further raise margin requirements, reducing leverage and the ability of investors to buy more gold. The agency would also have to act to limit the gold acquired individually and by the E.T.F.’s. All of these measures would have to be coordinated and put into effect on a global basis.
...if regulators are going to stop the next bubble, they will need to act aggressively. Of course, they shouldn’t act in every circumstance, but when we see volatility and speculation as is the case of gold, acting to curb these forces through limiting leverage in cooperation with international regulators would be a prudent course. This would ensure that if a crash does come, it does not have aftereffects on banks and other institutions. Even if the Commodity Futures Trading Commission is hesitant to take such steps, it could, as an initial foray, take to the media to try to “talk down” the speculation.
Otherwise, we’re left hoping, without much basis, that people have learned that this time will not be different, something not much in evidence in the case of gold.
If Davidoff was serious about halting the flight into gold, he wouldn't be calling for infringing on the basic right of the people to own gold. He would be calling for the end to government policies that are creating the flight to gold, namely, deficit spending, excessive taxation and government money printing.
Bottom line: Davidoff is a propagandist for the banksters who benefit from paper money and deficit spending. They know that gold is a check against their irresponsible activities and they are escalating their attack on gold.