first off, what experience do you have to rival his?

Second, i imagine the reason that he made the bet in USD, is because anyone that believes that gold is going down and the USD is going up, would clearly think that USD is a far better wager since they thing gold will go down, plus in our economy, usually you wont just walk into a store and buy stuff with gold, cash is more liquid in this economy.

He is playing on their arrogence.......