satur9nine

How the Treasury Bubble Will Burst and Why

Who are you people? When I am living in my post-bailout wasteland where the American dollar has no value I will be laughing my ass off at those of you who invested all your time and energy into buying worthless shiny metals. Instead I will be living in the completely self-sufficient bunker I built during the pre-apocalypse we call now. Why would anyone be interested in your metal when they could simply kill you and possess all your belongings after every single government and corporation in the world goes bankrupt and the human race reverts to savagery and anarchy?

Gold: The Last Cheap Asset Class

Remember this people, Gold and Silver are only valued for their physical uses. Stocks on the other hand represent ownership in a company, if that company generates profit (most good ones do) and you were the outright owner of that company you would get to keep that profit.

Right now gold is hot and the price is up because everyone is buying it, but what are you (and everyone else) going to do with it when you want to retire or buy a house? You have to sell it and who is going to buy it from you? Venture capitalists and businesses who buy and sell stock won't buy your gold from you, they want to buy companies because companies generate profit, gold on the other hand just sits there. The best you can hope for is to avoid inflation when buying Gold, and right now you can expect the price to drop from it's speculative high right now, there is no reason in the world for the price of Gold to outpace inflation by so much. So go ahead and buy it now, but expect to cut your losses when stocks start looking good again and people start selling all that useless Gold they bought.