One point he made caught my eye:
Critics, meanwhile, get obsessed with arguments that gold doesn’t have an income stream, cannot be valued easily and relies heavily on speculative buyers/investors. It is therefore crucially reliant on “confidence” – something they argue is very fickle. This is true, but confidence affects the return on all investments. Even a stock or a market with a known dividend can fall 50 per cent if sentiment sours and its price/ earnings ratio falls from 20 to 10 without any change in the underlying fundamentals.The part about confidence being fickle made me wonder if those skeptics are confusing gold with the fractional-reserve system. A loss in confidence could collapse the fractional-reserve banking system far more quickly, and more completely, than a loss of confidence in gold. To the extent to which gold skeptics are fiat-money fractional-reserve system boosters, the shoe is on the other foot.