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Thing is...most of us view gold as a "savings" not as an investment. If gold moves at precisely the rate of the dollar inversely then it at all times maintains it's true value and neither increases nor decreases in value. If you buy one ounce of gold and the dollar falls 300% you can turn around, sell that gold and buy the exact same amount of product as you could have when you initially bought the gold as the gold would be worth 3x as much but prices would have inflated 300%.
Last edited by Perry; 02-27-2012 at 02:09 PM.
“First they ignore you, then they laugh at you, then they fight you, then you win.”
-Mohandas Karamchand Gandhi
Gold has gone from ~$250 to ~$1750 in the past decade. It's not as if the prices of everything (or anything) else has multiplied by 7 in that time frame. Rent around here is about the same. I can still get a double cheeseburger off the McDonald's dollar menu (OK, they only give you one slice of cheese these days).
So while my gold may have just been "sitting there" all that time it's certainly done a lot more to help me feel secure in my future financial stability than my baseball cards.
Most? Really? Has he asked them all? The accent here, I suspect, issues from the fact that he is speaking through his $#@!.What motivates most gold purchasers is their belief that the ranks of the fearful will grow.
There is a good reason for this, and it is not because they are stupid.Admittedly, when people a century from now are fearful, it’s likely many will still rush to gold.
Bull$#@! again because the proper role is as a value store, not as an interest bearing asset.Our first two categories enjoy maximum popularity at peaks of fear: Terror over economic collapse
drives individuals to currency-based assets, most particularly U.S. obligations, and fear of currency
collapse fosters movement to sterile assets such as gold.
I don't know what his game is here, but I question his sincerity because his knowledge would be difficult to impeach.
"And thus I clothe my naked villany with old odd ends, stolen out of holy writ; and seem a saint when most I play a devil." -Shakespeare
“We know that concessions of privileges are but titles of servitude.”
"Giving alms to common beggars is naturally praised; because it seems to carry relief to the distressed and indigent: but when we observe the encouragement thence arising to idleness and debauchery, we regard that species of charity rather as a weakness than a virtue." -Hume
Umm, I thought that was the whole point of owning gold.Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.
God, how can someone so dimwitted get so rich?
And with the 1.5 Quadrillion derivatives market you could buy up all real estate and companies on earth.Who would want to invest in derivatives?Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it
would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At
$1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.
Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400
million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most
profitable company, one earning more than $40 billion annually). After these purchases, we would
have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying
binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?
I just popped his bubble.