The recent surge in the price of gold has renewed the interest in it as an investment, while creating a deluge of commentary within the gold bug community. I have read many new articles that tout $3000 gold, while others speak of $400.00 gold. Neither view is wrong in my opinion – nor is either view correct in my opinion. I will explain.

First and foremost it is imperative to remember that either of the above views is pricing gold in paper fiat dollar bills known as Federal Reserve Notes. These notes are paper promises to pay – not the means to pay. As such they are debt and nothing more. I have written on this extensively.