Hi Jay,
I must say this about investing in gold (physical, paper, shares) and stimulating more gold hoarding, mining:
*is very energy-intensive, and at a time of high energy costs is a shameful misallocation of investment of capital in that that energy has higher utility (transportation, food production, healthcare, home heating etc come to mind)
*the capital spent on gold exploration and invested in gold hoarding could help the impoverished parts of the world (of course, if we could find a way to efficiently deploy with good corporate governance) and this could be one way the nations of the world band together to control or ban gold hoarding.
*it could crash our financial systems on many levels, from the collapse of derivatives speculating on gold to engendering a complete lack of distrust in paper assets.
While I feel I must do it to protect my hard-earned money, I really would prefer investing in energy, because it is something we need and increasing the valuation of energy companies by buying their shares increases the value of what is 'in the ground' and will help juniors go public, plus attract more money to finding more energy, both in the ground and alternative resources.
David |
