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Gold has no intrinsic value. It doesn't even have the full faith and credit of the US government. It's value is based only on something called the the greater fool theory.
actually it is the reverse ...gold has 5000 years of acceptance as gov'ts , their currencies and their goods and services evaporate off the face of the earth over time....
everything else is subject to specific countries and gov'ts and trust in those gov'ts .
5000 years of history says gold will still be an accepted store of value long after we are gone as an empire ..it's value has been timeless .
The. FATCA law has made it difficult and in many cases impossible for American citizens to have regular bank accounts in foreign countries. The foreign banks don’t want our pitiful deposits because they trigger onerous reporting requirements and the exceptions are only for the very wealthy (>$10M) or people with political connections. If you’re an American expat living la vida loca, you’re going to pay for it with money from the ATM, or la novia’s bank account.
We have to do international banking and the only two financial institutions that really support linking American accounts with other countries are Citi and HSBC. We don't have anywhere close to $10m, but in order to not pay a bunch of fees we have to maintain one of the following with HSBC: 1) large mortgage 2) $75k in the HSBC system or 3) direct deposit of $5k.
What I don't understand is what the hell are you supposed to do with a gold coin if the S hits the F?
Gold is a hedge against inflation, it's a lousy investment otherwise, but gold always holds it's value. Your correct, in the event of civilization ending in say a nuclear war, gold will not be any more valuable then paper, but that's highly unlikely to happen any time soon.
The more likely situation is the United States government printing more money then it's Gross National Product can support. Leading to hyperinflation. While $1,790 invested in the stock market could make you more money, an ounce of gold doesn't. But the ounce of gold holds it's value, if the value of the dollar drops, gold will still buy the same $1,790 worth of goods in ten years from now as you can in 2020.
I recall a story about a German man who died in 1922 and his life saving were mailed to his next of kin, they gave them a 50,000 mark note, it was the smallest they had, and the stamp on the letter used to mail it was 5 million marks. THAT'S the point of Gold and why Gold is valuable!
Think it can't happen here? The United States Saving bond rating was down graded from AAA to AA+ in 2011, i predict it will continue to be down graded in future years till it's a junk bond rating. No one can continue to operate in a deficit every year forever.
Gold is a hedge against high inflation not normal inflation . It only responds to inflation when there is a big loss of confidence in dollar denominated assets ...but gold responds to other things too like politics,world events, fear , uncertainty and a weak dollar
Gold has beaten equities the last 20 years..ever since it has become a main stream investment the last 20 years it runs with the ball like any other asset class ..
It has beaten equities the last 20 years , the last 3 years , the last year and year to date .... I wouldn’t call that a poor investment .. in fact gold has been my best performer.
Going back before gold was easily bought and sold or a mainstream investment it was a poor investment..But now it is no different than any other ...
It has its day in the sun when called upon
Last edited by mathjak107; 07-07-2020 at 11:52 AM..
Gold has no intrinsic value. It doesn't even have the full faith and credit of the US government. It's value is based only on something called the the greater fool theory.
Gold has intrinsic value based on several sources. Jewelry and industrial use.
Gold has enough personal/business/banking faith all around the world, so it still has serious value.
It is just not a very useful or efficient form of money.
Gold has intrinsic value based on several sources. Jewelry and industrial use.
Gold has enough personal/business/banking faith all around the world, so it still has serious value.
It is just not a very useful or efficient form of money.
Golds value is intrinsic with a certain part of it containing the huge energy costs , equipment and labor needed to mine for it ....there is also very little new gold added each year because it is so costly to mine .....No government can print gold like they can money .
Golds value is intrinsic with a certain part of it containing the huge energy costs , equipment and labor needed to mine for it ....there is also very little new gold added each year because it is so costly to mine .....No government can print gold like they can money .
exactly. the intrinsic value of gold is in the labor costs required to mine it.
there are also utilitarian uses for gold which also add to its value, but not as much as silver and platinum.
exactly. the intrinsic value of gold is in the labor costs required to mine it.
there are also utilitarian uses for gold which also add to its value, but not as much as silver and platinum.
Platinum used to be way more than gold ...now it is far cheaper .
For purposes of flying fighter cover in my portfolio neither silver or platinum is up to the task and hasn’t been for decades .
When gold goes up when the Stock market tanks , silver plunges too ...it is an industrial metal and gets treated as such in these down turns.
Gold has become pretty main stream today and is a part of quite a few lazy portfolios....not so with silver or platinum and for the same reason ....with low inflation it has not responded well to stock market declines in decades
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