EXACTLY how would one use GOLD.... Take a gold coin to the grocery store???? Store gold bullion in your garage??? It is extremely heavy...very bulky....and not accepted in any form as a currency in any part of the world that I would live in... It is just a legal 'scam" that the promoters sell to the public..... SteveD
My purpose in the world is not to bash the dollar. I am NOT a goldbug. The first time I bought gold or a mining stock was in the spring of 05. Ok, Mr Steve, I'll explain it to ya. They print these dollars. They are backed by our "strong" economy. 77% of that GDP number they give us is consumption. Consumption keeps growing and growing. Its fed with imported goods. We keep importing and consuming more and more oil, gasoline, food, electronics, services (those call centers in India), and at the same time we either ditch the employees here, or pay them to retire. What are those dollars backed by? Debt and gluttonous consumption, not production. We keep giving all these other counties dollars ad infinitum, increasing at a rate of $2 or $3 billion per DAY. What are they going to BUY with them? Oh, I see, they don't buy anything with them, they just LEND them back to us with INTEREST. What happens when they get to the point they are owed so many dollars they don't trust us to pay them back with interest? What happens if because our debt is so high, they decide they want a higher rate of interest to keep loaning us more money? That's what happened in 1980, only now the debt is 5 times as high. Can't you see that there is something VERY WRONG with that equation? My bet is that I'll be able to exchange gold for spendable currency any day of the week, but that those dollars will end up like Argentia or Nicaragua's money, useful for wiping your butt, if you can't afford Charmin anymore. Remember the words "Not worth a Continental"
GOLD is a scam?? I agree but add GOD, LOVE and GOVERNMENT to the list of legal scams. This post is totally inappropriate and should not have been read. The poster should not have posted this but for some reason the poster does not listen to reason..
I sit on both sides of the fence on this issue because I think its important to have hard assets, but I do believe in the currency. I think in a crisis, the U.S. would try to back our money by something to strengthen it. But as far as the "doomsday" scenario of a currency collapse. maybe the old silver coinage would work for day to day purchases. Of course, bullets would be a currency too...sad to say that I'm serious. But having a lot of silver coins around is cumbersome for any serious sum of wealth, so you'd want smaller more valuable stuff, like gold too. You guys know that there are some gold coins out there that have a slight premium as collectibles that exceeds the value of gold, but not by much. They appreciate faster than inflation, but they would be a good thing to have if it all went to hell in a handbag. SM
Gold has more value imo, as it can be and is used for things other than trading. Paper money is only as good as it's government, and ours isn't exactly wowing anyone right now. I have lots of ammo, I'm prepared for a shtf scenario.
Anyone know if Jeremy Siegel ever recommends gold? I doubt it. From Siegel's research, $1 invested from 1800 to present yields:
These days, I suspect that the strength of the Dollar is because of the backing of our "strong" military.
GOLD is a giant scam preying on the fears of the vulnerable.....No one is going to give you anything for the gold in a dire situation...they don't want the stuff...what can they do with it...sit and look at it?? A large bag of small diamonds would come closer to doing what some "doomsday" thinks he needs....... The problem with gold/silver/ etc etc is they are NOT a currency...no one knows the value....a dollar is a dollar....only a gold dealer would trade with you and he is certainly not going to give you "fair value" in that situation.... The US economy is in pretty good shape.... The US has built more single family homes than the entire world combined in the last five years....... We have more people OWNING their own home than the world combined..... More people own land than entire world.... etc etc etc etc More office buildings, shopping centers, hotels, golf courses, retirement communities etc etc...... We have the richest, most productive farm land in the world....we consume 20% of the oil and pay $60/bbl and never look back If tomorrow the US said: NO MORE CHINESE IMPORTS !!! How many months would it take for China to be starving in the streets.....the entire country would collapse into bedlam..... Just to put this all in perspective.....people were saying exactly the same thing about the Japanese in the 70s...same tune, different choir..... SteveD