Comments on: Holding Physical Gold Is About Security, Not Speculation

By: Gold ETF

Gold ETF — Wed, 13 Oct 2010 06:26:06 +0000

I'm a big fan of trading ETFs and I don't think there is anything wrong with having some physical metals on hand.
However, if the "world ends as we know it" I think you would be far better off with cans of beans. And If there is an economic crash of epic proportions with defaults across the globe but with governments remaining intact I imagine the powers that be (whatever political party) would outlaw gold ownership and set some artificial cap on the price.
But if you think the world will mostly stay intact and inflation is going to happen at some point or if you expect central banks in various countries to continue to diversify their holdings with gold the precious metals seems a good place to be.

By: Roy

Roy — Tue, 12 Oct 2010 21:10:20 +0000

Physical possession is where it is at folks.
After world W II there was boatloads of money (currency) which you could not buy anything with. A wheel Barroe ful of money couldnt buy anything "BUT" Silver & Gold jewelery could be traded for anything the heart desired, including food, petrol, services. No one wanted currency, hard metal was where its at.

By: 20smoney

20smoney — Sat, 08 May 2010 00:34:58 +0000

How about if you have gold as well as food storage?

What is a dollar worth?

By: William

William — Sat, 08 May 2010 00:27:27 +0000

If the markets collapse and you have a chest of gold in your floorboards, you will still starve. Gold means no more than owning government bonds. An to think that an oz of gold is "worth" $1200 is bizarre. It is simply speculation about the fears of conspiricists.

By: Amateur Financier

Amateur Financier — Thu, 04 Mar 2010 21:21:20 +0000

I'm with Evan; it's hard to picture a situation where having physical gold on hand seems necessary. If the world (or at least, the country where I'm currently living) goes to heck in a hand-basket, I have my doubt that too many people will be taking gold in exchange for guns, food, potable water, or any of the other necessities of life. (At least, not after the first few groups to start trading find themselves with baskets of pretty yellow rocks while everyone around them now has their needed survival equipment.

If it's not an end of the world thing, though, I'm a bit unclear about the need to purchase gold (silver), particularly to purchase it in an actual, physical form that you keep in your house. It could get stolen (or lost, if your house is as disorganized as mine), requires high transaction costs to buy and sell, and is subject to the whims of investors (although, I'll admit the same can be said about every investment, to some extent). If it's an issue of diversification, I'm not sure why gold ETFs or something similar wouldn't be a good option.

Now, if the argument is that the US economy is in a precarious position and we might we a massive slump (if not outright collapse) in the dollar, then I'm with you on the need to diversify away from dollar denominated holdings. Although, wouldn't it be better to keep alternative currencies (Euros, pounds, yen, Canadian dollars, whatever you prefer), which can more easily be exchanged into dollars? (Unless the argument is that all major currencies could be brought down in an ensuing financial collapse, in which case we're back onto the Apocalyptic scenario anyway.) Just trying to get the reasoning behind a suggestion I keep seeing but which is usually not really explained.

By: 20smoney

20smoney — Mon, 01 Mar 2010 13:57:43 +0000

Well first, you're speaking of an "end of the world" scenario. Even in this scenario, I believe a gold coin (or silver coin) will be much more attractive than a greenback, no?

But, again thats the end of the world scenario, the security that I speak more of is the security against a completely unsustainable economy and entitlement society that we currently have going. The competitive currency devaluation around the world to "boost" growth is killing our purchasing power.

Lastly, like i said, gold isn't the end-all solution, its just a part of the overall picture. Thx.

By: Evan

Evan — Mon, 01 Mar 2010 03:53:51 +0000

Maybe its cause I am ignorant, maybe it is because I am young (in 20s also, albeit late 20s) but I don't get it. Lets say we go to hell in a hand basket and those with the most amount of guns are running things…what is the brick of gold going to do for you?