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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: sm1th who wrote (13172)	3/20/2012 8:15:24 PM
From: TimF	Respond to of 85487

f, for example, it had been put in gold, SS truly would be well funded Buying all that gold over the years and holding on to it, would have driven up the price that the government paid for gold, then as the baby boomers retire there would be a massive dump of gold on the market, lowering the price. Gold works better as a hedge or an investment, when you can buy or sell all you want without having the price move against you much. (Of course that factor would also affect other investments not just gold.) And even ignoring that fact, gold hasn't been a very good investment over the long run. It maintains its value (in recent years its done a lot more than that, but I'm talking very long run). To fund a growing number of retirees with fewer workers per retiree you need a positive return over time.