In the video below, Mark Dice attempts to give away a gold coin to anyone who can tell him what the price of gold is within 25% of its current price. He then tries to give it away to anyone who can guess the price within 50%. No one comes up with an answer anywhere close.
Readers of EPJ are likely to know the answer and will likely be amazed at how many people are clueless, but this is an important lesson. Those who know the value of gold and its importance as a hedge against severe price inflation are few and far between. My guess is that the number of Americans that hold gold is under 5%. What happens if a severe price inflation hits and more people start to understand how gold protects against price inflation? The number of people wanting to hold gold is going to soar. That means enormous new demand for gold and gold coins. Just think about it, if those interested in owning gold climbs to 10%, 25% or 50% of the population, the price of gold is going to climb a lot faster then overall price inflation.
Fed massive money printing is going to make life difficult for many, but not those holding gold.
(ht Gary North)