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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: UncleBigs who wrote (63694)	6/15/2006 1:21:19 AM
From: crustyoldprospector	Respond to of 110194

"...social mood will be quite sour and in no mood to be speculating on metals." With all due respect, IMO you completely miss the point. The reason people accumulate precious metals during hard economic times is for the very reason that there are no safe speculations, and also that liquidity is poor. By contrast, gold is extremely liquid, and maintains most of it's relative purchasing power even through currency crises. This is true even at the national level; if you recall South Korea's flirt with current account bankruptcy a few years back, part of their way out of the crisis involved making good on payments by way of selling gold that was voluntarily collected from citizens. Having something liquid to pawn is the bottom of the pyramid of financial security, and for liquidity you can't beat gold. To think that will not be true in the future flies in the face of thousands of years of history.