Quote:
Originally Posted by u-Bob
So gold != investment. Gold == protection against inflation.
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I understand everything you're saying, but it doesn't really matter, because more than likely your purchasing power is still going to be the same, if not less. For example, say another economic crash happens, but this time around, there's no bailouts of government assistance. Instead, the world economy goes into free fall.
Sure, with your gold, that $2 loaf of bread that now costs $16 still costs the same, because you still have the same purchasing power. However, what happens when people start running out of money, and begin selling off their $30k gold deposits in mass? The market will be flooded with gold, and your purchasing power will become substantially less, regardless of currency used.
And if another economic collapse happens, you can expect the largest shareholders of gold to dump their investments immediately, and cash in while they can, leaving the poor guy with $30k invested with his thumb up his ass, wondering where his money went. The guys with the most invested aren't going to sit around, and wait for a mass sell off.