Why I don't trust gold

[redbluepill]

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.

To a point I agree. But I wonder if Buffett would say the same thing about a paper dollar...

 

[Seraphim]

Yeah exactly.

I've seen Jordan argue a lot of points against gold - I think he isn't grasping that most of the precious metals enthusiasts around these parts merely express their monetary valuations IN GOLD/SILVER.

No different then he does in USD. That's fine...Don't trust gold as money. I'll continue not trusting the USD as money.

Danke's graph of the 10 year gold chart (international money) and the 10 year S&P 500 chart (which is an expression of the productive value of the banks and major corporations that have centered their power around the USD) tell a rather convincing story.

To a point I agree. But I wonder if Buffett would say the same thing about a paper dollar...

 

[Seraphim]

Post 138 by Danke.

Help me!

 

[JasonC]

Total lies, falsehoods, innuendo, and misdirection of the worst sort. Everyone knows Martians are economically and historically illiterate. But Sumerian records make absolutely clear that the Anunnaki (from the planet Nibiru), came to earth specifically looking for gold to mine. The Anunnaki genetically engineered humans to work for them, so you might say that seeking out gold is hard wired into our DNA. SOME aliens know exactly why we pay people to stand around guarding gold.

Warren Buffett blatantly lied about both gold and aliens and therefore, all of his statements on every other topic are also called into question.

 

[Warrior_of_Freedom]

What does it matter if your gold is worth 3x as much if everything costs 3x as much to buy?

 

[Diurdi]

What does it matter if your gold is worth 3x as much if everything costs 3x as much to buy?

If the alternative is that you hold Federal Reserve notes that are worthless, then it does matter.

P.S. Gold $1616

 

[Godisnowhere]

The finest furnishings in billionaires jets are covered with Gold. Wedding Rings are Gold and the most treasured memorial to a human being union. I could go on and on. Gold has been money for a long time and has great value for many things. Granted Silver is better from my view because it is a money metal and is used in every single computer, cell phone, solar device, ... But to say Gold is useless other than money is a completely ignorant statement. However, Silver is the better deal folks. And the alternative to Gold and Silver, the US dollar or the Euro, real estate, stocks all based on fiat currencies is not a smart bet now. But if you really think Gold is useless just buy some T-bills and wait until they make you some real money. You will be in for a long wait.

 

[hazek]

To the moon!:

 

[Sola_Fide]

http://mises.org/books/Gold_is_Money_Sennholz.pdf

 

[inibo]

Total lies, falsehoods, innuendo, and misdirection of the worst sort. Everyone knows Martians are economically and historically illiterate. But Sumerian records make absolutely clear that the Anunnaki (from the planet Nibiru), came to earth specifically looking for gold to mine. The Anunnaki genetically engineered humans to work for them, so you might say that seeking out gold is hard wired into our DNA. SOME aliens know exactly why we pay people to stand around guarding gold.

Warren Buffett blatantly lied about both gold and aliens and therefore, all of his statements on every other topic are also called into question.

I'm glad someone else gets it.

Anunnaki!

 

[LibertyEagle]

Total lies, falsehoods, innuendo, and misdirection of the worst sort. Everyone knows Martians are economically and historically illiterate. But Sumerian records make absolutely clear that the Anunnaki (from the planet Nibiru), came to earth specifically looking for gold to mine. The Anunnaki genetically engineered humans to work for them, so you might say that seeking out gold is hard wired into our DNA. SOME aliens know exactly why we pay people to stand around guarding gold.

Warren Buffett blatantly lied about both gold and aliens and therefore, all of his statements on every other topic are also called into question.

Uh, what???

 

[JasonC]

Uh, what???

That's what I said... lulz.

Care to elaborate, enoch?

 

[pmbug]

... Everyone knows Martians are economically and historically illiterate. But ...

Hmm... Your ideas are intriguing to me and I would like to subscribe to your newsletter.

 

[enoch150]

Care to elaborate, enoch?

Just something I read once, back when everyone was still using dial-up.

http://en.wikipedia.org/wiki/Ancient_astronauts#Zecharia_Sitchin

 

[inibo]

It's in our DNA. That's bullish.

 

[Jeez]

The finest furnishings in billionaires jets are covered with Gold. Wedding Rings are Gold and the most treasured memorial to a human being union. I could go on and on. Gold has been money for a long time and has great value for many things. Granted Silver is better from my view because it is a money metal and is used in every single computer, cell phone, solar device, ... But to say Gold is useless other than money is a completely ignorant statement. However, Silver is the better deal folks. And the alternative to Gold and Silver, the US dollar or the Euro, real estate, stocks all based on fiat currencies is not a smart bet now. But if you really think Gold is useless just buy some T-bills and wait until they make you some real money. You will be in for a long wait.

Since silver is industrial metal if this demand plunges (global recession) so will its value. Hence you can't use silver has hedge against economic instability.

 

[JackieDan]

I don't agree with Warren buffet. Gold must be attached to money because if not then governments can create inflation that drives prices up and distorts the market and it leads to an inevitable recession. We have to use gold to make sure our prices and purchasing power stand strong and even so that it does not benefit one group or another. This is the problem with paper money as it does not function as a preserver of value, but instead diminishes. He has a point, but he gives you the illusion to simply deny that gold has no value, it has value because it has been used as money for 6,000 years, and its value has always been the same. Gold is an interesting metal too. It never corrodes, it leads electricity better than copper and other metals (except for silver), but we use copper because it's cheaper.

Anyways, this is why we must use hard assets attached our money so that governments and central banks cannot print money out of thin air and bailout their friends just because they have a printing machine. They would never be able to do this if gold was there to face up to them. This is why Gold saves us from economic insanity as it ensures value. We need value so that we can save, and provide for ourselves and future generations.

 

[Acala]

Since silver is industrial metal if this demand plunges (global recession) so will its value. Hence you can't use silver has hedge against economic instability.

Except that silver is not ONLY an industrial metal. It is also a monetary metal and has been for thousands of years. A global collapse is likely to be precipitated by a paper currency collapse. As the supply of trustworthy paper currency falls dramatically, the demand for HISTORICALLY trustworthy metallic currency goes through the roof while supply remains stable. Rising demand and stable supply. Voila!

 

[libertyjam]

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.

I'm sorry but gold has immense industrial value and use, just the rarity and expense of alone, like with platinum, make other alternatives frequently more attractive.

 

[junkmonkey]

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."

Humans havent lost interest in gold in 5000 years. For some reason we have a natural attraction to it. Maybe its proof of God and God wanted us to have a stable currency form.