loss of capital through inflation, deflation, and economic collapse. Don't own any if you don't believe it.
Are you buying?
Nope. I own enough and I got in at $950/oz. I'm currently focusing on paying off my house as an investment. I might not make a lot of money on that investment but I won't find myself homeless either. I am focused on capital/asset preservation. I'm not trying to get rich.
It is at $1750/ounce because people are willing to buy it at that price right now...partially because they have bought into the idea of it being insurance
they have lost faith in fiat currency and its ability to create stability. They, therefore, anticipate chaos and gold has always been the place to be during such times.
I agree that having some gold might be useful in a depression if you could actually use it to barter with.
I won't be bartering for anything except cash. Guaranteed. should the need arise, I will trade my metals and other assets for an acceptable quantity of US federal reserve notes which I will then use to keep my ship floating through the troubled waters. even if it dropped to $1,000/ounce, I would still have preserved my wealth. It will not drop to $1,000/ounce btw.
“loss of capital through inflation, deflation, and economic collapse”
Okay...I understand that. I bought the hobby farm first to provide a great place for my family to grow, but it was also a great investment that should preserve my capitol as well.
“I’m currently focusing on paying off my house as an investment.”
If you sold the gold would you have enough to pay off the house? In my way of thinking, having the house paid off would be more insurance then having gold in my pocket...
From this post I think we are both aiming at the same thing...”asset preservation”...we are just approaching it from different angles and with different risks.
“they have lost faith in fiat currency and its ability to create stability”...”I won’t be bartering for anything except cash. Guaranteed. should the need arise, I will trade my metals and other assets for an acceptable quantity of US federal reserve notes which I will then use to keep my ship floating through the troubled waters.”
This is where I get confused...if fiat currency cannot create stability now, why return to using it when we will be in chaos? If the economy collapses and paper money becomes worthless, I as a producer would not accept paper money in payment for let’s say a dozen eggs...but I might accept a bale of hay or apples, or gas, etc...
I guess we will both just have to continue with our plans to preserve our assets...hopefully we will both do well.