Gold is universally accepted as cash money. How many countries have had the same government for 75 years–not a lot. When you change governments, you change currency. Poof there go your savings. Most of the big countries hold large amounts of gold. All they have to do is print paper to own it. Not a bad trade.
99% of the worlds gold is still with us. That doesn’t really sound like a commodity. In my world commodities get used up. Don’t quote jewelry consumption, that usually quoted as a percentage of the current years production and that gets recycled eventually.
An ounce of gold can be hammered into a sheet of foil measuring 70 square feet. Then there is electroplating.
Ever wonder why the US government went off of the gold standard? You can’t print more money unless you back it up with gold. Without the gold standard, there is no restriction on printing money.
Inflation is a way the government can tax everyone. Free health care, social security for everyone, free home ownership. Gold doesn’t have to buy this pipe dream. Gold could hit $3,000 per ounce, that doesn’t mean you’ll be rich, it means that you had better ask your employer for $3,000 a week as your salary.
In 1964 my dad made $7,000 dollars a year and our house cost $25,000 brand new. My mother didn’t have to work. Gold was $32 an ounce. The school lunch was 25 cents
If you think of gold as an investment or commodity, keep away from it. Gold is an insurance policy, it will buy just as much today as it will in 30 years.
There is another saying, “bad money chases out good money.” Have you seen any real silver coins lately? The government didn’t melt them down. How about a $5 dollar gold piece? FDR passed a law making it illegal for US citizens to own gold–they repealed that in the 60’s (I might be wrong on the date).
