Hi Claude,
Like some others that have responded, I have some basic problems with holding bullion or egold:
1. I trade and invest almost entirely within an RRSP.
2. I prefer the liquidity and (especially) the leverage that equities provide.
3. Bullion spreads / commissions can be ridiculous.
Ultimately my (subjective) probability distribution over future states of the world simply does not place very much weight on that set of states in which bullion (or egold) will turn out to have been the best investment. As far as I can see, so long as the current 'system' survives -- i.e., no doomsday breakdowns -- then even if we end up in a highly inflationary situation, I will do better holding / trading producers of (and explorers for) gold than gold itself. And if we do get to true doomsday scenarios, sure, there would be some in which gold functions as money, and the basic social and legal institutions exist. If that happens, I will wish I had insured with some bullion purchases. But once we start talking about true financial system collapse, there are mnay other scenarios in which the best things to have with you will be your wits and a weapon, and I haven't bought a weapon yet either. You may think I am without wits as well, after this post, but this is how I see it. |
