Quote:
Originally Posted by franxic
so if the system goes down (which is inevitable), what are you going to do with your gold coins?
One need only look to history for your answer. I would be more worried about paper money since history is replete with examples of people pushing wheel-barrows full of money down the street to go buy a loaf of bread.
Gold has historically been a store of wealth that can be carried easily from place to place and accepted from country to country. The more paper money that government's print the less valuable it becomes (simple supply and demand without even looking at the issue of full faith and credit in the issuer of the paper money) and the government with trillion dollar deficits keeps printing more and more of it.
Make fun of him for buying gold coins if you will (I will simply say that he was foolish to buy it from an informercial with their huge mark-ups and not buy actual gold ounce wafers from a dealer that might mark it up under 1 per cent over world spot price), but it is an insurance policy against government recklessness/oppression.
p.s. Franxic, your comments on exchanging gold for a new currency really reflects an ignorance of financial exchange and history. Look at the US example: what is Confederate Money worth today since they lost the civil war and their government collapsed? Would gold purchased at that time with paper money not have been a better investment since the gold could have been, by whatever side that won, convertible into the currency of the victor?
Gold is a store of wealth --- Cash (electronic or paper variety) is not a store of wealth. Lesson complete.
Last edited by justonemoretime; 11-03-2011 at 08:38 AM.