Replies

Yup, Gold Fever...

I’ve admitted that gold has merit, the ultimate way to protect your money. But it doesn’t grow.

So, both protect from a declining currency, but with the stock you also have the byproduct, of profit. Or at least the potential for it.

"I’ve admitted that gold has merit, the ultimate way to protect your money. But it doesn’t grow.

But there are a bunch of assumptions here, one being that "money" is necessarily something other than gold? Or maybe you meant "wealth"?

If it's not "money", why do bankers have (most?) of it accumulated by the ton, buried underground in vaults? Pretty strange, wouldn't you agree? Dig it up, melt it down into bars, bury it again.

The only reason it doesn't "grow" is because the government made it illegal for Americans to hold for decades, forbade contracts payable in gold (reneging on contract law?) and the US congress to declare in so many words, that using gold coins was "against public policy" - and accused the American people of "hoarding" gold. (But the supposed 8 thousand tons at Fort Knox, that's not "hoarding"??).

With all that, I agree there isn't near enough of it to have a functioning economy. But monetary inflation robs people - good, honest, hard-working people - (lets not worry about crooks and thieves here, they seem to be getting along fine) of their savings and is ultimately a broken promise - or a default on a contract if you will.

What is the benefit of differently valued and fluctuating currencies to the great masses of people who don't sit in front of a computer moniter tracking stocks and markets, who are only trying to get through the day? How do you propose that the average person (who may be more concerned with the return OF their money rather than the return ON their money) protect themselves? My answer would be "With a 12 Gauge"; but this same government has historically tried to deny them the right of self-defense. (I'm not paranoid, just paying attention)

You could also say that you are protecting your money when you buy a stock. You give money, buy stock, the stock might be valued in dollars, but the stock is based in value by the profit it makes. And usually, if the currency is lower, they make more money, making the stock......go up. So, both protect from a declining currency, but with the stock you also have the byproduct, of profit. Or at least the potential for it.

During steady economic times, yes. During crisis times, no. Many folks over the age of 75 have folders full of stock certs that are worth exactly the paper they are printed on, plus the ink. Their paper assets went to zero.

You may believe (based on your life experience) that stocks are literally better than gold, but don't bet on them holding their value (much less increasing) across a period of economic turmoil and dislocation. You may wind up with a stack of "Confederate War Bonds," as has happened time and again over history. (Or in the modern era, a series of zeros on your computer.)

Now, that might be beyond your experience horizon I'll grant you. You do need to read history to discover this.

Are we entering such a time? Paul Volcker is one of those you may have heard of who says yes.

Of course, you are free to just laugh it up. That is your right.

PM from Professional to Travis, yesterday.

Re: Dollar dives as US slump spreads

From Professional | 10/19/2007 8:47:34 PM PDT read

Financial genius? Wouldn’t that be you, mr. “thousand dollar gold next year” prognosticator? You’re just mad, cuz you’re a gold bug, and think that this “object” is your savior. You know, thousands of years ago people knelt for gold. Know where it got them? Let me guess, at one time, you were in the financial biz, couldn’t hack it, got fired, been pissy ever since? Go back to your bomb shelter, get your Ron Paul poster, and go to bed with it you crazy gold bug. He he he, loser.