Thursday, November 06, 2008

No silver lining

Q: If the world is heading for a catastrophe, why are gold prices plummeting?

A: With 20B ounces of gold in the world, each dollar decrease in the value of an ounce of gold reduces the wealth of the world by 20B, and a three hundred dollar drop in gold has reduced the wealth of the world by 6T.

Q: Oh, I get it. Gold is going down because, by some measures, it could be conceived as good news for gold to be going up.

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