Welcome to Banking in 1885, State Banks issue currency, Gold/Silver are widely accepted as tender and medium of exchange and it is immune to loss of value issues (debt-paper money) !How can Karl Marx make a living in such a place ? It worked for a long time, until the Feds decided they couldissue currency and protect it's value............................120 years later the Feds were wrong !
I own gold – I have gold stocks because I don’t want the negative carry expense of storing and guarding gold; plus I have gold coins and gold jewelry (at least 18 K, no 14 K garbage). In case of a slow slide, I can use gold coins for barter. But it is simply another investment; a small part of mine. All investments can be liquidated, from coins to art. But beyond a “slow” slide, in the case of a catastrophic, apocalyptic wipeout, I maintain that gold is as useless as paper. A better way to protect yourself against a slow slide is to divest: buy Canadian agricultural stocks, buy Brazilian mining, buy European industrials, etc. And do NOT buy U.S. ADR certificates because eg JP Morgan will get wiped out along with your certificates they issued – buy the stocks directly.Imagine a rapture (which the fanatics talks about). Or imagine an apocalyptic end that many religions predict, who would care about gold in an apocalypse? If it’s all over, who cares about gold? That’s why my point was to consider gold as just another investment. In a slow crash, you can always liquidate, whether you liquidate paper or coins or antique cars. Even during the Great Depression, many stocks went UP. That’s the point of wise investing (also a word of advice, don’t listen to 99% of experts, follow your gut instincts).
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Time to dust off the Cross of Gold speech.
Investing in gold is hardly a scam, only those misinformed, lacking knowledge of the market would suggest that. Should you dump all of your retirement in it? Of course not but a fair percentage makes for a well rounded portfolio. I would buy gold directly and safely store it, do not buy certificates.
welcome eric - this article is about using gold as a curreny, not about investing gold. Certificates or gold? Tough one. if the world falls apart overnight, certificates might be useless. Storing gold is expensive, it might eat up your profit. In the very extreme case of the world falling apart, gold is also not of much use - you can't eat gold. So it's basically just another investment - an investment that has so far not outperformed stock markets over a long period.
True. If the world does fall apart, food won't be free and much more expensive, what are you going to buy it with, worthless paper? That's why I would buy gold directly, in a crisis situation certificates may not be honored. I would't buy it(gold) to make money, I would by it as a permanent safeguard for a portfolio.
hi welcome - the point I made was that if the world falls apart, both paper and gold are fairly useless because you cannot eat gold. It would become a world of barter of useful items only. Gold is not useful in an emregency. If the world slides slowly, then you can use gold to barter for food.
It's odd how when ever they talk about the value of gold they go back to 1980 as the starting point. Why not use 2005? Gold has tripled and silver has quadrupled in value while stocks and realty have dropped like a brick. Very few people invested heavily in Gold and silver in the 1980s, and lots of people made out when they cashed in gold that they had brought for 35.00$ per ounce. G & S just need to keep up with inflation and they will out perform most investments. this year should be another banner year for metals with all the uncertainty in the value of the world's currencies.
Check out BULLION RESERVE OF NORTH AMERICA, before you invest or put your retirement into this scam.
I expect more of these things to crop up. Last summer was "The summer of recovery". This summer will be "The summer of recovering from the recovery". And next summer will be the summer of "See ya all in the Caymans"!
Some traders may point out that the same thing happened in 1978 where the price of gold reached $800 oz. which made it even more expensive than today as compared with 1978 dollars, and then fell again, but this WILL NOT HAPPEN THIS TIME. The Fed was a completely different animal back then as it was the largest creditor in the world,and had a much, much lower national debt. With a multi- trillon dollar debt in 2011 and much excess currency, the US is hardly in this position anymore.
Not so fast. Problem is that the rest of the world is stuck with our dollars. And woe to anyone who tries to move away from the dollar, such as Sadam Hussein, Qadafy and now Dominique Strauss-Kahn. They may be no better or worse than our other dictator friends, but these guys who try to desert the dollar always get crucified. Even if they were our friends not ong ago.
A fool and his money is easily parted. Why would the state have to pass a law that allows a priviate busniess to take your coins. It makes no sense other than it being another scheme to fleece you sponsored in this case by the state. A private company backing up your money. Why doesn't the state just do it. Sure sounds like its a private FED. Too funny. ...give me your gold and silver I'll give you a debit card.
Guess you know nothing. Maybe you should research things before you open your mouth. In the USA if you don't accept green toilet paper the courts won't back you up if there's a despute. Got it now? Next time look into it before you make a stupid statement. MARC
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