Quote:
Originally Posted by Kiopa_Matt
Problem being, once the whole monetary system begins picking up again, loads of gold would have already been sold, hence a good amount of your investment lost. Plus the scare tactics being used right now to sell gold probably won't exist, so you're probably in for a long wait if you want to break even. People won't be clamoring around to buy gold again.
|
You are looking at this the wrong way. You are looking at Gold as something to invest in using the current common currency. The problem is that while gold is a commodity like any other, something that is subject to the law of supply and demand, and cannot be created out of thin air, the current common currency is not. The fact that governments/The Fed/The ECB/... create money out of thin air creates a situation whereby the supply of the current common currency is constantly being inflated and it thus loses it's value, it's purchasing power.
The increase in the price of gold (and other precious metals) we have been seeing over the last couple of years is only for a minor part the result of the hype ('scare tactics',... essentially the law of supply and demand). The real cause for the 'increase' in price is the decrease in purchasing power of the current common currency (be it USD or EUR...).
So in essence, the price of gold has only gone up slightly because of the hype, it's actually the value/purchasing power of the USD, the EUR etc, the currencies in which we are expressing the price of the products thats has been going down.
So gold != investment. Gold == protection against inflation.