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Another Record High For Gold | Market Skeptics (http://www.marketskeptics.com/2011/04/another-record-high-for-gold.html - broken link)
Petro dollars are now leaving the Euro due to the Portgual,Greece, and Ireland finicial mess and going to gold. The above article describes how the value of a falling dollar cause the buying of Gold.
Gold is just another commodity the speculators use to fleece the fools. Beyond its use in industry it has very little intrinsic value. This did not stop the barkeepers in the Gold rushes to trade a shot of whiskey for a pinch of gold dust.
It seems to me that gold has no more intrinsic value than Conch shells, eagle feathers or dare I say it, paper money.
depends on how you define intrinsic value. in a world where we're all birds, maybe eagle feathers have tons of value.
instead we're humans, and we have a long cultural tradition of valuing this scarce, shiny metal.
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In the dooms day scenarios so pervasive amongst dystopian theorist I would no more exchange a pound of gold for a kernel of corn than I would for a ton of scrap iron... actually the scrap iron might have more value since I could at least make utensils out of the scrap metal.
Doomsday scenarios are just that... scenarios.
If you're the type to "invest" by stockpiling ammo and building a machine gun turret on the roof of your ranch house, then gold won't be valuable in your doomsday scenario.
if you're the type who thinks that the change in absolute value of the dollar over time is a problem that will eventually demand a new monetary solution from civilized foreign people, then precious metals ought to be a great investment.
Less than 1% of the investment money is in precious metals, just think what would happen if 10 billionares started ptting 10 % of their money in precious metals. The market would explode because there is not enough gold or silver to go around. A simple rise of 5% investment money would cause the metals to go to the moon.
I just read something funny. Portugal, which is basically broke, owns about 21 billion dollars worth of gold, ranking first in terms of percentage of GDP in the entire EU and among the global top 15 in absolute terms (tons and dollars).
Sitting on hundreds of tons of gold reserves, but can't do anything with it
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