Q1. If you say
that gold
"is an asset that people want to hold when they’re very fearful about potential financial market catastrophe or economic troubles" or
that gold is an
"asset that people hold as a sort of disaster insurance" and someone points out that you hold around 70% of your reserves in gold, you should:
A. say that you are not fearful at all
because "under the wise and skillful leadership of Chairman Bernanke, the Fed helped stabilize the financial system, arrest the steep fall in the economy, and restart growth."
B. say "does 70% allocation to gold sound like I think everything is peachy pie, you moron?"
C. just say
that "it is tradition, a long-term tradition" to hold gold as
"a form of reserves" and tell them to keep calm and carry on doing what you say and not what you do.
D. Note the person's name and forward it to the NSA.
Q2. If you say
that "nobody really understands gold prices and I don’t pretend to understand them either" or
that you
"don’t think anybody has a very good model of what makes gold prices go up or down" and someone points out that it isn't very smart to invest 70% of your reserves in an asset you don't understand, you should:
A. say that when you
have "a lock on the economics world" and don't allow
"room for other views", you don't need to understand anything nor does it matter if you get it wrong.
B. say "that was just to scare people off investing in gold, because do you really think we don't understand gold when we employ
over 300 Ph.D. economists and have written hundreds of papers on gold, you moron?"
C. just say
that "it is tradition, a long-term tradition" to hold gold as
"a form of reserves" and tell them to keep calm and carry on doing what you say and not what you do.
D. Note the person's name and forward it to the NSA.
Answer key: anything exept B.
