Why I don't trust gold

[Jordan]

http://finance.yahoo.com/banking-bu...xkY2FuYmU-?sec=topStories&pos=5&asset=&ccode=

Some gems here...

Warren Buffett put it well. "Gold gets dug out of the ground in Africa, or someplace," he said. "Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

It's a currency "substitute," but it's useless. In prison, at least, they use cigarettes: If all else fails, they can smoke them. Imagine a bunch of health nuts in a nonsmoking "facility" still trying to settle their debts with cigarettes. That's gold. It doesn't make sense.

Yes, it's a "hard asset," but so are lots of other things—like land, bags of rice, even bottled water

As for being a "store of value," anyone who bought gold in the late 1970s and held on lost nearly all their purchasing power over the next 20 years.

 

[Travlyr]

That's interesting. If that's the case, then maybe the international bankers will be willing to divvy up their gold with the rest of us.

 

[JoshLowry]

As for being a "store of value," anyone who bought gold in the late 1970s and held on lost nearly all their purchasing power over the next 20 years.

And what happened the 20 years after that? People live much longer than 3 or 4 decades.

In the long run, any on hand tangible assets are better than the paper federal reserve note.

 

[Jordan]

And what happened the 20 years after that? People live much longer than 3 or 4 decades.

 

[squarepusher]

ill give you the same argument for paper money? what would martians think of that

 

[Pennsylvania]

It has no utility

http://en.wikipedia.org/wiki/Gold#Industry

 

[brandon]

Beat me to it. Keep this up and I can retire from posting soon.

 

[bluemarkets]

that's a buy signal from yahoo news

 

[libertybrewcity]

he has a good point, but that's because gold has been kicked to the side. if a dollar bill was solid and lasted for millions of years, we could say the same thing about that. it's all about the current state of system. warren buffett will be sorry when the us dollar becomes worthless and gold is skyrocketing.

 

[libertybrewcity]

http://en.wikipedia.org/wiki/Gold#Industry

yes, and this is excellent.

 

[JoshLowry]

In the long run, any on hand tangible assets are better than the paper federal reserve note.

My point which you excluded when you quoted me still stands.

 

[klamath]

Yeaw I am getting a little tired of hearing Gold has no value. Gold is a valuable industrial metal. Anything with the physical properties of gold has very high value. Just the one, the highest malability of any metal on earth. You're are probably making your statement through the gold wires in the IC's in you computer.

 

[jon_perez]

Just Warren Buffet trying to talk up the price of silver (which has more industrial use than gold)... which he owns a heck of a lot of...

 

[tmosley]

Gold's inherent lack of utility, when combined with it's rarity, are what make it useful as money. Martians understand this, as have people for thousands of years.

Gold, when used as money, serves as an excellent, incorruptible economic indicator. It measures precisely society's time preference for spending, allowing highly accurate economic calculations by individuals. When governments print and steal money via inflation, an additional variable is introduced, such that the value of the currency no longer gives a clear definition of time preference. Without that indicator, individual economic calculations go awry, and the errors compound upon themselves as the government prints more and more money to intervene, until the currency collapses.

Get it?

 

[Danke]

 

[fatjohn]

Anyone DUMB enough to have bought this shit over the last 12 years lost out. With gold, you only have 1 period of 6 months during the last 40 years, where you can say that you lost accounting for inflation.

 

[tmosley]

http://finance.yahoo.com/banking-bu...xkY2FuYmU-?sec=topStories&pos=5&asset=&ccode=

Some gems here...

Warren Buffett put it well. "Gold gets dug out of the ground in Africa, or someplace," he said. "Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

It's a currency "substitute," but it's useless. In prison, at least, they use cigarettes: If all else fails, they can smoke them. Imagine a bunch of health nuts in a nonsmoking "facility" still trying to settle their debts with cigarettes. That's gold. It doesn't make sense.

Yes, it's a "hard asset," but so are lots of other things—like land, bags of rice, even bottled water

As for being a "store of value," anyone who bought gold in the late 1970s and held on lost nearly all their purchasing power over the next 20 years.

If you don't trust gold, what do you trust?

Think back to when gold collapsed in the early 80's. What caused that to happen? Volcker raised the interest rate to 20%. You think Bernanke is going to do that? You think these United States could stand to have their tax rate doubled, or tripled to pay that interest? Note that the current tax rate is something like 40-50%, depending on your state, not including sales taxes.

Also take this into account--last time gold ran up so much, it could be partially attributed to the Hunt Bros actions in the silver market. This time, there are no big players buying on margin, it's sovereigns and individuals buying with cash. Big sales are now met with enormous demand rather than trepidation in the market. People are starting to lose faith in the currency itself. What do you think will happen then?

 

[Acala]

Hahahaha

Saying gold has no utility is the same as saying money has no utility when in fact money was one of the most useful inventions in human history. And gold has historically been the best money the world has ever known for very good reasons that are fundamental to the metal itself.

Buffet is a lying scoundrel.

 

[Jordan]

My point which you excluded when you quoted me still stands.

I quoted you before you edited.

 

[Jordan]

Nothing like showing a really short term chart to prove your position.