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 Gold Customer
Joined: 4/4/2005
Posts: 1
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The media claims that gold is a safe haven. Would someone please explain how anyone can believe that you can buy a slice of bread with a copy of your stock account showing that you have a piece of gold in a Chinese bank in London? Gold looks like a broken clock that is right twice a day. Go back 30 years and you can see that dollars in all the gold in the world under performed the DOW by trillions of dollars.
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Registered User
Joined: 9/25/2007
Posts: 1,506
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Well ...First ... there is a difference between GLD ... and GOLD ...You may not be able to buy a slice of bread with the first ... but I can assure you ... you can buy a bakery with the second ...Gold is a hedge against fiat currency debasement ...The next question is what is causing and/or will cause that debasement ...Perhaps it is inflation ... which will likely cause a temporary spike ... and then wane ...Perhaps ... you live in a country that is so fiscally irresponsible ... that they will soon find themselves in a situation where they have no choice to embark on a long, methodical program of orchestrated inflation through currency debasement in order to reduce the debt to a manageable level relative to GDP ... (or maybe you don't live in the US)In essence ... it is a default on debt ...If I borrow $100 from you ... and pay you back $50 ... and tell you that I'm not paying any more ... then you would have no problem recognizing that as a default ... right ?But ... if I borrow $100 ... and then do something to make the money only have half the buying power that it had when you loaned it to me ... and then pay you back $100 ... I've screwed you just the same ... and it represents the same type of default ...The US only has one way out .. and that is default ... and since they are never going to openly default ... they must do it through orchestrated inflation ...They can't agree on spending cuts that average less than $400M per year ... and they are spending $1.4T-$1.6T more than they are taking in ..You want to own physical gold ... in your possession ... not in a repository somewhere ...Estate taxes are 45% over a $5M exemption ...But they don't tax what they can't find ...It's easy to move to a new jurisdiction ... Etc ...
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Registered User
Joined: 1/28/2005
Posts: 6,049
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QUOTE (realitycheck) Well ...First ... there is a difference between GLD ... and GOLD ...You may not be able to buy a slice of bread with the first ... but
...but you can hit someone over the head wth gold and take their bread. 
Thanks
diceman
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Registered User
Joined: 2/5/2006
Posts: 1,148
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QUOTE (Leo1) Go back 30 years and you can see that dollars in all the gold in the world under performed the DOW by trillions of dollars.
and how does the last ten years look? or is 30 years your time horizon?
QUOTE (Leo1) The media claims that gold is a safe haven.
this does not imply gold will always outperform stocks. it implies gold will perform better in times of crisis. gold has been traded for a few thousand years. thats a few years longer than any company traded on the stock exchange.
try putting a piece of gold in your safe rather than a chinese bank.
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Registered User
Joined: 2/5/2006
Posts: 1,148
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anyone see ron paul's portfolio?
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Registered User
Joined: 2/5/2006
Posts: 1,148
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.......and i would bet he has few coins stashed somewhere, too.
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Registered User
Joined: 3/8/2011
Posts: 58
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No wonder he wants to return the dollar back to the gold standard.
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Registered User
Joined: 2/5/2006
Posts: 1,148
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heck, he outta just keep the printing presses going.
no doubt this will become an election issue if paul moves up in the polls.
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