I wonder what would happen if more gold was sold then actually existed? As I understand it, not everyone that buys gold takes possession of it, so it is possible the same gold is sold over and over again.
Or if a dishonest organization purposely sets out to defraud someone else by selling gold they do not have.
I see a lot of post by those that would encourage people to buy gold, why is it so important for these posters to convince us it is such a good thing?
Since I do not know the answers, I will (continue to) not buy gold.
I think you are spot on. I would never encourage anyone to buy gold. Look how the metals have sold off the past few days. Of course, some (I) would consider this a buying opportunity. That’s what makes a market, and that’s what make some wealthy.
Gold and Silver are money. They are a store of value. This means that they will save those who own them from being wiped out in the great dollar devaluation.
Moreover, both metals are currently rising in true buying power (not merely price) with respect to both stocks and real estate. This long-term trend will reverse only when one oz of Gold has a price equal to maybe once or twice the DOW.
This means that Gold is going to increase its buying power by about eight times - probably by 2013.
You do indeed see a lot of posts by FReepers who advise you to buy precious metals. This is because we don’t want our fellow conservatives to be wandering the streets in two years time pushing a wheelbarrow full of Bernanke ClownBucks.