... Q should be out of business within 35 year, and gold, in business until the end of time.
Yes Jay, but little glitches can happen such as gold confiscation by the state. Not to mention other naughty people [common criminals] who prefer force to exchange of value as a way of life. The same can happen to other assets, as Chairman Mao and other communists decided would be a good idea = simply confiscate all property using the barrel of a gun.
Long before 35 years, QCOM will have paid back the investment and a lot more besides. Gold will just be holding its value, [inflation adjusted], less any improved production technique devaluations.
< people stayed wealthy if they had the gold, and they blew up if not.> Of course any asset is better than a South Seas Investment Bubble.
<the cost of manufacturing a parachute is almost nil compared to how much the single parachute is worth on board a doomed 20 passenger aeroplane. >
Gold is not very good for parachutes. It's too heavy. Also, there is simply too tiny an amount of it for everyone to use as an anti-inflation hedge. People can buy land, building, a wide range of commodities and other stuff as an alternative to gold. Gold is already so far above its production cost that the lifeboats are full as far as gold is concerned. Okay, maybe not full, but by $600, it's getting up there compared with other asset prices.
Mqurice |
