the belief that gold stored value crippled spain. I thought the study of mercantlilism put to rest the idea that precious metals had some sort of eternal value. And even if they did - why would that value hold up in an deflationary environment. I am not saying there are not some conditions in which Gold would be useful and therefore a considered valuable for trade. I am just saying if we deflate into souplines - who is going to pay up for gold. if we were to deflate into anarchy - I would take guns,ammo, water and food over gold as a store of value. Just think about it -- lawlessness roaming the streets and you got some food, guns, water and ammo safely stashed. Are you going to sell it for gold. Hardly. You might sell it for labor... but for gold?
like the mormons.....? wouldnt need to sale it for labor you just sale the idea you wont shoot them if they give you want you want in a state of anarchy no one is there to protect them... or maybe you could sell them that...
I am not here to piss any gold bugs off. My father was a Gold bug in the 7Os who made enough on his trade to buy a house in Greenwich Ct at the time. So, I believe Gold bugs. I just know the timing is difficult. I am do think the Federal Reserve screwed this up on purpose. I am concerned they are trying to move towards one world currency. I do think that if we avoid deflation, I want to be long gold, oil and food. Just like jimmy rogers was preaching. but... there are no easy trades. As seykota said, there are old traders and bold traders but no old bold traders.
as i was just stating this to reinforce the statement that was quoted .... not a new idea... so the only thing revolutionary that we've discovered is that pretty obviously your a dick.