One accurate forecast makes this man a guru

Just one accurate forecast, and the press thinks this guy is God. He obviously does not read the bible. The gold used to buy horses in King Solomon's time has nearly the same value today (according to an article by Alan Kohler). Here is an extract of his opinion:-

"The great sage himself - seer of the financial crisis, gloom-n-doomster extraordinaire - Nouriel Roubini thinks today's gold investors are "sheep or lemmings".

Either way, gold is a dumb thing to buy, says he. Because it's a bubble, plain and simple and always.

"Since gold has no intrinsic value," says Dr.Doom, "there are significant risks of a downward correction."

Oh sorry - that was him back in December 2009, not August 2011."


Gold has an intrinsic value, created by the financial world because there is nothing else as good or reliable as a value indicator. It is relatively rare and very difficult to purify (mining and processing). You cannot manufacture or print it. It can be a bubble but it is not always a bubble. Tulip was once a bubble. So let a simple gasman with no accounting or economics background educate the famous American professor.... because since that 2009 statement of his, POG has gone up and up by more than double. If the price falls, gold will not be economical to produce for a lot of mines and so the supply will fall. And when the supply falls, the POG will go up again. That simple, Professor.