Quote:
Originally Posted by Sausage
Uneducated people don't realise that gold today buys you roughly the same value of goods as it did 100, or even 1000 years ago. Gold is finite, and when a countries currency becomes worthless people will revert to gold (and silver etc).... just see Zimbabwe .. gold is one of the main currencies there now amongst the people.
Gold hasn't gained value, nor has it lost value .. its worth the same. The only thing losing value is the currency which isn't really backed by much at all. You invest in gold to protect your wealth ... and the rise of gold means your $ are worth less and less as your government pumps out trillions more ... rendering each $ worth less. Just watch the carnage when the US$ is dumped as the world currency .. that is going to be horrible to watch.
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Well that's only half true. You forget that this guy is living in the USA (as far as I know) so for him it's a good thing. If he would sell the gold right now he gets way more dollars than what he had last year. However, in euros or other currencies the appreciation of gold is way lower. I'm also not a big fan of gold etc. You have to store this stuff somewhere safe, if you buy it physical and that also costs oretty much money. And just draw the multi year gold graph here:
http://www.kitco.com/charts/historicalgold.html
Buy low and sell high! It's not a buying time anymore...