Goldsnow,
Interesting post. However, I think
several things need to be sorted out.
First, when Cortez landed in Vera Cruz
in search of gold, the Aztecs wondered
what the Spanish obsession was with the
metal. The Aztecs liked working with
gold because it could be manipulated
well and kept its shine...in short, it
made good jewelry. In fact, at one point
the Aztecs tried to get rid of the Spanish
by giving them all the gold they had. The
plan backfired because it only made the
Spanish think they had even more gold
hidden away. The Aztec empire was sacked
and as they say "the rest was history".
I myself must agree that gold, while its
a pretty metal, lacks some of the strat-
egic properties such as silver and plat-
inum to be a metal that would make men
as desperate as they were in the 1500's.
As long as governments of the world remain
stable, I think paper assets will (such as
cash, bonds, or even common stocks) will
hold solid value. Now on the other hand
if we entered a nasty period of uncertainty,
then I think weapons would probably be a
better hedge for the future. I just don't
think we will see any wars fought over gold
in the future. Oil yes, but not gold.
Just my humble opinion,
-John
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