A Note on Gold, again.
I have entertained a few questions about gold as an investment, since I have posted tons of brags and graphs about how awesome I am at predicting the markets. In reality, I boast no such claim - gold as an investment is a relatively poor one, given the capital gains taxes and the storage costs of the actual metal if you own it, compared to an ETF like GLD. Held gold pays no interest or dividend, to boot.
A post in the Economics forum at 2+2 brought this up, and I felt it worth posting about. The reason that I made a significant purchase of gold was a hedge against monetary disaster, not as an “investment.” I would assume that Buff (ikilled007) had the same reasons as well.
So, “investing” in gold isn’t exactly the reason we chose to buy shares of GLD / buy gold coins. We did it because an intermediate understanding of economics indicated that hedging against domestic monetary risk would likely have a positive net gain. It was fairly obvious then, and now we are vindicated, as satisfaction with the government and the economy reaches rock bottom.
You cannot artificially manipulate the price of goods and services by printing tons of worthless fiat money and expect that the markets won’t push back. This type of analysis is not even worthy of economic analysis; it is simple arithmetic. When you intentionally devalue the purchasing power of one individual US Dollar, what do you think is going to happen?
Keynes was wrong, but it’s decades too late to point that out. Reserve banking will be the death of our economy.
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