Originally posted by fraterormus
The object to investing is to buy low and sell high.
Anyone who buys Gold right now, especially if they can't afford to lose the majority of their investment, is either reckless or a fool.
Well that all depends on why you’re buying it. A person buying it for profit would be a fool to buy it now, but a person who is buying it as
"insurance" is not.
The likelihood, one would hope, is that someday the economy will recover and the dollar will be worth more, thus gold will go down in value relative
to US currency. So… not a good investment.
But the case for insurance is where the dollar completely becomes worthless and gold becomes the only viable currency is another story. In this
situation you won't be selling your gold for 1000's of worthless US dollars so you can go to the store and buy a $100 loaf of bread. No, in this
case you will be using the gold itself to trade and barter.
The flaw, I will admit, with this plan is that everyone will be taking care of their immediate needs like food and shelter in the beginning and no one
will want your gold. As new bartering systems spring up from the grass roots like trading seeds, tools, blankets, gas, etc., eventually people look
for a commodity in which they can use to trade as an intermediary and precious metals will emerge as a solid system of currency. It has before and
all through history and will again.
So will gold save your butt in the case of a post-apocalyptic-money-meltdown or zombie attack…probably not. If you do survive it though, you’ll
have a huge leg up on money to spend once things settle down.
In looking through history and what people have done with gold stashes in this situation, they usually use them to pay their fare to get the heck out
of where they live. i.e. Jews with gold using it to flee Germany during WWII. Now that is good insurance!
As for those of you who are talking about having gold in paper form….uh…ok? I see no benefit to that at all!
Incidentally I have been thinking about buying some but I’m going to limit myself to like $3000 in small coins. Just enough so I can buy things I
might need or to get out of Dodge, but I should also buy some bags of beans and some seeds while I’m at it. I think tools would be a good
commodity to have too, like farming implements. I fully expect that we will recover someday and my investment will probably be worth less than half
of what I pay for it. The loss I would incur would be viewed as the equivalent of paying $1500 for apocalypse insurance.
edit on 6-10-2010 by JonInMichigan because: typo