Posted on 08/04/2011 6:03:53 PM PDT by Nachum
When the two-year Treasury note is 0.26 percent, it makes no sense to lock up your money for two years vs keeping it totally liquid in a cash account.
The same can be said about th eten-year Treasury note. Why lock up your money for ten years and only get 2.5%?
You will miss out on other opportunities.
REALLY! For your calculation to be an actual FACT, you would need to know what the true value of gold is. I would love to see your method of deriving that figure published, peer reviewed and accepted by the market. A market that currently values gold from “a historical oddity” - zero in other words - to over $9K.
A “myth”? A myth is a sheet of paper with a promise of repayment from a government with a guaranteed financial collapse in its future. Gold requires no politician’s fulfillment of a previous politician’s promise. See Zimbabwe for how the myth of a part currency plays out.
Don’t conflate a fiat, paper currency with the need of a modern economy for access to capital.
This is of course close to the truth but that wasn't my point.
It was this: Gold will never the place that everybody goes for a safe haven - - unless they do it through proxy and fractional reserve via their central banks or perhaps some private analog. There is simply not enough of it around; nor is gold the only store of wealth. It's simply the most fungible and universally understood.
Well, it was until PayPal came along!
Having all your money in gold clouds your judgement as to its worth.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.