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To: WILLIALAL
Remember, when you buy gold, you are betting on long term inflation. If it turns out to be deflation, you lose.

This is a common misconception.
You have to get over thinking about gold in terms of dollars. An ounce of gold is just an ounce of gold. It is a store of wealth and not an investment. There is no significant appreciation or depreciation over the long haul. Although there can be significant gains or losses in the short term.
As I was telling my brother in law just the other day, an ounce of gold will buy a good mens suit. It's a pretty good approximation. Inflation, or deflation an ounce will still buy a good mens suit.

28 posted on 09/20/2012 7:44:16 AM PDT by Politically Correct (A member of the rabble in good standing)
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To: Politically Correct
You have to get over thinking about gold in terms of dollars. An ounce of gold is just an ounce of gold. It is a store of wealth and not an investment.

You know, even after all the "SHTF talk" and hedging your other investments with gold, the "store of wealth" is still relative to what humans value in a given situation.

If people are starving, and have no food, they cannot eat gold. In such a case, a bag of grain might be more valuable.

If someone has an infection, they cannot inject themselves with gold; they cannot swallow a gold coin and cure themselves. In such a case, an anti-biotic is more valuable.

If someone wants to build a shelter, and all they have is an electric circular saw but no electricity, gold will not magically produce energy. In such a case, a handsaw is more valuable.

Why do we value gold, as a store of wealth?

44 posted on 09/20/2012 9:02:17 AM PDT by Lou L (Health "insurance" is NOT the same as health "care")
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