posted on Jun, 30 2010 @ 08:22 PM
reply to post by pirhanna
Here's the difference.
Faber and all the other Austrian economists that are pushing gold aren't pushing gold because they WANT to be holding gold.
They are pushing gold because they are being backed into a corner by our criminal federal reserve and government.
Do you understand the difference?
Holding gold does not grant you a profit.
Holding gold is a hedge.
They are saying to hold gold as a hedge because the Fed is about to debase the currency.
Gold is not a productive entity. Gold does not produce things. Gold does not make the world a better place. Gold does not provide dividend returns.
Buying gold gives you nothing.
So saying they are pushing gold and making a killing off it is ridiculous on its face because gold provides no real returns. Real returns come from
stock holdings that give dividends on profits. Real returns come from the stock of profitable corporations (real profits from productive activity).
That's where real growth comes from.
However they are saying those real returns will not out pace the rate of government debasing the currency. Thus, one must hedge against the actions
of our criminal government.
And so far - they have been right.
Gold is the real measure of the dollars value - not some basket of fake fiat currencies.
Holding gold is holding real money, but that real money provides no profits, only a hedge on purchasing power.
[edit on 30-6-2010 by mnemeth1]