The Money Bubble

Whether the gold price will continue to rise will depend not just on whether faith in fiat money continues to decline, but on whether the search for an improved form of money will produce, as we should all hope, something not just as good as gold, but better than it.

Say you are a pension fund that needs an 8% return to meet its liabilities without difficulty. And say that stocks have been inflated to the point that you can in all honesty expect only a 2% return over the long run from here given reasonable assumptions about valuation metrics returning to something sensible at some point. You might be tempted to