Why do some people say Gold/commodities is a safer investment than the US dollar?
April 27, 2010 by
Filed under gold investment
There is no military protecting the value of the Gold but the US dollar has the largest military protecting it. and if some alchemist finds a way to easily make a lot of gold it suddenly loses all it’s value. Same for all other metals and commodities. In a way the US dollar even if you don’t agree with some of the politics is the safe investment because the full power of the US military protects its market.
I’ll give you $40 for every $20 US gold piece you bring me.
Wonder who is gonna do better in the long run?
I don’t mean to offend, but this may be the dumbest “question” I’ve ever seen posted on YA, and I’ve been here a while.
Because it is.
The military can’t protect the dollar.
It is backed by debt.
China calls in that debt, and the dollar would be worthless almost immediately.
It’s nothing but paper.
Fiat money is only worth the paper its printed on… Gold has other uses and is in of itself a commodity.. just as all traditional money was in the past.
Gold and silver have been money since the dawn of man. Every paper currency that has ever been has collapsed.
When you buy gold — you buy gold coins — easily hidden, easily transported, easy to see if counterfeit. There is an absolute amount of Au on this planet so it cannot be printed like paper currency. It is a store of value.
Buying commodities (paper promised to pay) in gold is akin to buying CD from Madoff.
Gold has kept its value through history. Buy Gold coins and store them at home in a very good safe — Buy safe from local dealer in cash and take it home without much fanfare. Fort Knox safes are very good.
Trust No One with your retirement funds.
The military is the biggest drain on the $US there is. They spend incredible amounts of money and produce nothing. Now they are rapidly becoming dominated by psycho evangelicals. A double whammy.
because some investors are easily manipulated.
The issue is inflation. Gold has a set value regardless of the value of any country’s currency. That value exists; it is real. What changes is the value of your dollars. If gold goes up from $400 to $800, the value of gold did not change, the value of dollars went down. You now need twice as many dollars to equal the same amount of gold. If gold goes from $800 to $400 again, the gold remains the same the dollars are worth twice as much.
If anyone could come up with a process that creates gold, then whatever commodities they require to make that gold will skyrocket. You cannot make something from nothing. If the process uses lead, lead will become the new gold. If the process uses silver, silver will become the new gold. If it uses zinc, zinc will become the new gold. No matter what, there will always be some commodity that is required and that makes it more valuable.
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