Should you buy Gold ?
Andre Willers
7 Oct 2014
Synopsis :
Silver seems a better bet from a historical perspective .
Discussion :
Gold has always been a currency in its own right .
What you are talking about is the Exchange rate between a currency and gold .
Look what happens if you take a round trip around the diagonal .
There is too little physical gold to play a large role in financial affairs of large nations .
Historically , when a fiat currency collapses , silver coins take over .
Happened numerous times in China , Europe , Japan and USA .
Gold was suspicious (a peasant in posession of gold coin was usually hanged , on suspicion.)
Silver was the valuable commercial medium .
In a complete collapse (like in Bronze Age Collapse circa 1200 BCE) , Neo-Vikings will certainly plunder Singapore .
And there goes your gold .
Historically , old currencies were simply replaced before inflation or deflation could do too much damage ,
Only in exceptional circumstances was the full path allowed (eg Germany 1923 - reparation of war debts)
Try to keeptrack of all the zeroes lopped off in Francs , Lire , Rubles etc .
Expect the same with $US , &UK , Euro's (if it survives this ,which is doubtful . More likely new Marks etc)
Nifty footwork is the price of keeping your assets from greedy fingers .
As usual .
Money is boring , especially if you have too much of it .
Who owns who , after all .
Andre
xxxxxxxxxxxxxxxxxx
No comments:
Post a Comment