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Germany also continues to take back gold.
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John Burns
Posted 11/23/2014 12:20 (#4196075 - in reply to #4195795)
Subject: RE: Missing the Point

Pittsburg, Kansas

I don't think any of us think we are going into a state of anarchy tomorrow or any time soon. No one wants that.

But then neither did any citizens of the countries that it happened in either.

Currency failures are not broadly advertised to the public. The Mexican government did not warn their people a month in advance that they were going to devalue. To have done so, the devaluation would not have worked. It has to be a surprise for the devaluation to benefit the governments finances. It has to catch the most people by surprise. That is the controlled devaluations. The uncontrolled ones (hyperinflation) are much worse and are also a surprise to almost everyone, often even the ones in charge.

You don't go without car insurance for 30 years because you know there will be no wreck, then suddenly one day buy car insurance because you know there will be a wreck tomorrow. If you know there is going to be a wreck in the economy tomorrow, it is a way too late to have waited to buy gold.

Another very important thing to point out. Gold is to protect wealth, not to create it. Investments are to create wealth. Things that can grow. Gold can not grow. All it ever is or will be is gold. If a person does not already have wealth, they have very little reason to hold much gold. If they don't have wealth, they need assets that can create wealth. Gold is a dead asset. If a person thinks the price of gold is going up and they want to cash out some day for a higher price, it is not an investment, it is a speculation. Speculations are ok if you have the money to speculate with. But gold is never an investment. It can be monetary insurance (with a price to be paid for that insurance because gold earns nothing unless put at risk as in leased out) or it can be a speculation, but never an investment. The word investment indicates putting money into an asset that has the potential of growth. An ounce of gold will never be anything other than an ounce of gold. It is not an investment. In our topsy turvy world the words investment and speculation have been melded to mean one and the same. They are not. People without wealth should not own but a very minimal amount of gold if any. They should be investing in things that can create wealth. THEN once they are wealthy, they may have a need to protect SOME of their wealth with some gold. But not until. This is one of the reasons un-wealthy people denigrate gold. Because they don't understand it and can't afford to own it anyway. And why wealthy people rarely talk about it to the masses. They know they will not understand it. Only a few wealthy people like Jim Rogers, Marc Faber, ect, ect. stoop down to us peons and try to help us understand it. Yet we for the most part only ridicule them. And why the dumb masses remain the dumb masses.

Not one in a thousand people even understand what gold is and is not, let alone what it is good for.


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