What is your response to those who say, with some justification, that almost every ounce ever produced is still in circulation. And those who claim that every spike in the price of gold acts as a magnet for sellers and not as an attraction for buyers.
Well I know you werent asking *me* but Ill tell you what I think anyway. :)
Perhaps your first statement is true. I do not know. But how many more of us (humans) are crawling around on the earth today, than ever before? And the point can only matter with something that there is a limit on. There is only theoretically so much gold. Paper can never compare.
As to the second statement. It reminds me of the worn out old saw: Where ever there is a seller . . . there is a buyer. The trick is to be on the right end of the equation.
Plus gold has never been what paper has become. I only expect to make big money on gold when, and if, it does a STRANGE thing. At least in relation to volatile paper assets. At the turn of the century 1 ounce of gold would buy you a nice suit. It still will today. It is the UNUSUAL periods of history where paper, and other flamible (or rusting, or bug eatable) investments get so out of whack that it looks like gold is doing a strange thing.
I believe that gold is (for the most part) simply remaining constant. Thus its time proven 'safe haven' position in economies.
Is that era over? *That* is the real debate. I think not. Without it's weight (density), limited supply (whatever size), mallability, and portability, I would say it might be indeed a new era...
Plus, if we really are to enter a new world where gold loses it's value, I would contend that paper assets will also be of little consequence.
cAPSLOCK |
