December 19, 2010
– Comments (4)
Very funny! Everyone who owns stock in a gold mining company or who is involved in selling gold to the people buying it at today's inflated prices should send this clip to as many people as they can. Of course all of this is just a good argument as to why one should have bought gold instead of stock 10 years ago, not necessarily now. Better still I should have put my whole portfolio into AAPL and COH at 86 and 13, but I only put a small chunk in each. Oh well. They were good buys then and I am holding them now, but I wouldn't buy more at these prices.
As for me, if and when I panic and decide that all money and stocks are just "worthless paper" I will probably end up concluding that gold is just "worthless metal." What I will want then is a good truck, some shotguns and ammunition, some non-perishable food, water purification materials and medication, and some farming tools. Nothing else will matter.
Laughing my butt off. I am not a big fan of gold, but everytime Krugman speaks I think 'what a moron', lol.
For those of you like tomlonggrpv, here is a video (that was once posted by a fellow fool) explaining why gold and silver were chosen as currency millennia ago, and if humanity had to make the choice again, we would most likely end up choosing the very same precious medals as currency again. It wasn't by chance that we chose gold as currency. It has several favorable qualities combined, which make it very unique...
Reporter:"So imagine we are on earth and we get to rewind the clock and play out history again maybe it would go a different way..." "Do you think it would go a different way?"
Chemist: "I am convinced, knowing what we know now and reconstructing it, the earth, with every parameter we have, gold is the sweet spot."
As an aside: the price of anything by itself is not enough information to determine whether or not it is under or overvalued... It is the price in the overall context...
Actually many places never chose gold as a currency. Some chose copper (a bit unwieldy) and others even chose stone (more unwieldy too). But hey people in the 1700s even into the early 1800s bled themselves to cure "illnesses" and "witches" were put on trial by seeing if they drowned (innocent) or floated (guilty). So if past practices are the guide MoneyWorksforMe you should slit your wrists and let the blood flow to cure your illnesses. More seriously if. like most gold bugs, you think we are on the brink of collapse, buy something that is really valuable in a Mad Max type of world. When I have my shotguns, food, water purifiers and antibiotics, I won't be interested in your gold because I am not a chemist and most other people are not as well. I will be interested in how you can enhance my food and water supply and my security.