Welcome Ursa Major....The BIGGEST Gold Bear of em All.
I have just been retained to defend the Gold Bears. It has been made clear that on CAPs, there are not too many defending the sell side of the Gold equation. There are fairys, and chimps and others pounding their chest how Gold is the place to be.....and it quite well may be, but according to Alstrynomic evaluation, Gold is for Fools.
There are two primary reasons the CAPs Fools advocate for gold:
First, most people buy Gold as a hedge against inflation......well those who see inflation right now are clearly living in another era or don't know how to count total money creation.
Second, others see it as a hedge against catastrophic breakdown in governments or social order....this one I find most amusing because if such an event happens, the only thing you will be able to use gold for is capping your teeth. And if you think a gun is the better choice, it better be a machine gun with an unlimited supply of bullets....and even then, you likely won't make it through the first reload.
No my friends, the world is not coming to an end, and even if it was, you think having a bunch of gold around you would help? Maybe I should just call you Pharoh? Do you think if you had enough in the bank, the bank would let you take it out? Do you think if the world was really coming to an end, anyone would give a damm about gold? Just look at New Orleans AFTER Katrina, you think gold was better than cash??????
There is a new perspective in town about Gold, and it is the Alstrynomic perspecitve. It is not neccessarily the right one because who knows how fickle people's emotions are as they will bid up anything to rediculous prices if emotions get stirred up enough. In the past, tulip bulbs were worth more than an entire farm. A share of an internet toy retailer was worth more than a toy retailer iwth a bigger internet presence and hundreds of profitable stores.
Yes, my friends, as far as investments go Gold is for Fools and there is no better forum than TMF to bring it out. It used to be money decades ago. It used to be a sign of wealth for thousands of years. But just like the dinosaur who roamed the globe, it is now better in museams for show than holding for dough.
Now if people go nuts and start bidding up the price for whatever reason, the upside is unlimited. But as more and more people lose their jobs, bussines shuts down, wages get cut, governments start cutting back.....there will be less and less money to buy anything. And if you have a choice between a golden apple and a apple made of gold, if you are hungry, the apple wins every time.