trotsky [ PM ]
April 16, 2007 11:53AM
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Registered: 2 months ago
Posts: 146
i moved about one third of my savings (i.e., cash savings in CDs and savings accounts, as distinct from stock market investments) into gold coins a few years ago, and i regularly add to the stash whenever gold suffers a bigger correction.
needless to say, it's not a decision i'm regretting.
however, even if the gold price were to fall, this wouldn't concern me much (i would merely end up buying more gold as a result), since the main function of those coins is insurance against systemic collapse. no fiat money has survived historically, but gold will always be valued. it is the money of the free market - entirely free of liabilities.
a good example illustrating the timelessness of gold is the following story:
a few years ago, some enterprising treasure hunters finally found some of the Nazi Reichsbank loot that had been buried somewhere in the woods in Bavaria. they found all sorts of things, enormous bags full of paper money, as well as a few bags of gold.
the interesting thing was this: the entire hoard of paper money was utterly worthless. every single one of the currencies represented had in the meantime been repudiated. obviously, the gold was a different story - it was the only thing of value to survive from the Reichsbank loot.
i immediately thought at the time 'well, if THIS doesn't make people think, what will?' |
