Should you buy gold ?

Should you buy Gold ?

Andre Willers

7 Oct 2014

Synopsis :

Silver seems a better bet from a historical perspective .

Discussion :

See http://www.zerohedge.com/news/2014-10-06/will-gold-crash-dow-or-soar

Gold has always been a currency in its own right .

What you are talking about is the Exchange rate between a currency and gold .

See http://andreswhy.blogspot.com/2009/03/transactional-physics-exchange-rat...

See also http://andreswhy.blogspot.com/2008/10/financial-crisis-2008-exchange-rat...

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 .

See http://andreswhy.blogspot.com/2014/02/neo-vikings.html

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 .

http://andreswhy.blogspot.com/2011/11/inflation-vs-deflation.html

http://andreswhy.blogspot.com/2011/11/inflation-vs-deflation-ii.html

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

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