reply to post by getreadyalready
I hear ya however. Gold and Silver in all cultures around the world are considered a store of wealth. Have been for eons past, so I agree with you
100% prepare for physical eventuality, food water supplies tools etc etc etc as any good boy scout would, including me. But this is NOT an either or
But also prepare asset wise. Just remember those green things in your pocket are losing their value day by day, that is one of the reasons the price
keeps going up. simple inflation.
And yes the majority of "gold" traded on the CME is paper contracts and not real gold. If all people who "buy gold" on the CME ask for physical
delivery you are looking at a default of epic proportions that would see at the last conservative estimate I saw at around $55,000 an oz.as the ratio
of paper to physical on the CME is around 50:1
Some call it a bubble, due to manipulation. but what people fail to realise, truthfully is that it is more or an "anti-bubble" the manipulation is
designed to keep the price low!!
Yes there are rumours that gold is missing, and that "they" will not let fort Knox be audited, along with the tungsten bars found in vaults in Russia.
but if this comes out what will that do to the price. it introduces further scarcity, so the price goes.......up.
The whole reason that I hold it is this. even if the price tomorrow dropped to $500 an ounce I would not be so worried. for one simple reason. That
whatever happened for that to happen can only mean that the underpinning currency on which it is based has deflated (opposite of inflation) i.e. grown
in strength. That would be matched by falling prices across the board, as simply the currency would be worth more. So that being the reasoning, if you
pay $1500 for a tope end PC today, and tomorrow the world falls in and the price drops then the PC would be priced at $500.
Even if everyone sold someone has to buy, unless you're all thinking that the US gov will just confiscate everything like they did several decades
ago. However there is one tiny problem with that premise.
China amongst others now hold most of it, and they are not selling.
edit on 2/8/2011 by JakiusFogg because: a little bit extra!