What Will The Next Fool Pay For Gold?

Imagine investing as a game of musical chairs. While the music is playing, participants in the capital markets weave their way through a complex labyrinth of financial products, moving from one security to another like a monkey swinging from vine to vine. What makes this work is the assumption that when the music stops, everyone is holding something of value. The person left holding stocks has a residual claim on the cash flows of a corporation. The person with bonds holds a promissory note from the issuer to receive a predetermined sum at a predetermined time. The person with an office building has an asset that will create reliable income through the collection of rent. But what about the person holding gold?