Why Gold has to go down...
- Thread starter PohPoh
- Start date
Quote from Kevmeister:
LOL. Gold is just like any other investment. You're trying to make money. Forget all the hedging bullshit, inflation, deflation, etc, etc.
If all the doom and gloomers have their day, the dollar becomes worthless and the world goes back to the caveman ages then my can of chicken noodle soup, pack of vegetable seeds, bottled water, gun and ammo will be worth much more than your 10,000 ounces of gold.
I guess the guy with the 10,000 cans of soup will trade it for your gold, so he can buy-----------oops, he wants to keep his soup. no deal.
I haven't tried to eat any gold lately, please tell me what it taste like.
another lost soul in line...
so why is water cheap? maybe you are missing something.
lol. it almost looks like i am defending gold bugs here....not really my intent.
Quote from Kevmeister:
LOL. Gold is just like any other investment. You're trying to make money. Forget all the hedging bullshit, inflation, deflation, etc, etc.
If all the doom and gloomers have their day, the dollar becomes worthless and the world goes back to the caveman ages then my can of chicken noodle soup, pack of vegetable seeds, bottled water, gun and ammo will be worth much more than your 10,000 ounces of gold.
I guess the guy with the 10,000 cans of soup will trade it for your gold, so he can buy-----------oops, he wants to keep his soup. no deal.
I haven't tried to eat any gold lately, please tell me what it taste like.
I find your post interesting. Lets say you have 1 million dollars in assets and you want to preserve that wealth. You feel the USD will fall substantially. Do you buy 1 million dollars worth of guns or soup?
If you believe the dollar will fall you short $1m USD worth of DX Dollar Index futures. Why on earth would I take the scenic route of buying gold in order to bet against the USD if I can simply short the Dollar outright (lets leave out counterparty risk and the probabilities of exchanges going bust for a second)?
Very true, very true.
However, the world is not going back to the caveman ages so we should confine our analysis to what is actually possible.
Just do whatever you believe will protect your wealth. But if you believe the USD will fall into oblivion then yes, spend your million on soup, guns because gold doesn't cook too well. Don't forget toilet paper. Make sure you get lots of toilet paper. Leaves and pine cones just won't cut it.
My post was to make fun of people who are using gold to hedge -- just in case -- against collapse of the USA, world, etc. Use it to make money or hedge....Just like any other investment.
I would say if you have substantial savings one would be wise to have some cash and gold stashed away in another country.
Crackpot tinfoil hat thinking?
Maybe but as the Romans used to say in times of peace smart men prepare for war.
Other then that, I agree.
Gold went up more then 2000% in the seventies and guess what: "The world didnt end!!!":eek:
I bet a very substantial part of the worlds population didnt even know or cared about the price of gold back then period.
Who knows we might have a nice run up like that again we'll see.
Yeah, go out there buy some real estate, enjoy the much increased owner costs with decreasing leases. Or buy some stocks, because their earnings & balance sheets are so honest.
People are turning a FIAT form of exchange into a REAL ASSET form. But judging your belief into the good will of the Fed, I guess I can understand your reasoning.
Stop peddling your illiquid wanna-be precious metal.