huskerbob

It's 'Hammer Time' for Gold

CJJ: Where do you get the idea that gold investors are all expecting the apocalypse? Do you judge all of your investments by "how easily can I exchange this for food if there is a complete breakdown of society"? Your questions are not answered because they're not important to gold investors. Why would I ever trade gold for groceries? Do you expect to trade shares of GM for groceries?
The appeal is that gold will always be worth something. I simply expect (as do most gold investors) to trade gold for fiat which I can use for other things. When I see that gold is very high relative to the price of something I want, I will sell gold and pay for that item in currency. Currency is a medium of exchange which varies in value according to politics, policy, debt, wars, etc.
Money is a store of value. Gold is money. I'm not worried about the apocalypse, I want sound money and the dollar ain't it.
Maybe I should ask you: "Do you expect to exchange those $2 for a gallon of gas in 10 years?"
You mention gold lasts. When was the last time you heard someone say "the almighty dollar"? I don't mean sarcastically.

It's 'Hammer Time' for Gold

More than an indicator of inflation, gold is a measure of confidence in paper money and the economy. Most were lulled into comfort by the performance of the economy after gold's peak, which became the greatest economic expansion in world history.
Now the blinders are off and people are forced to see that the economy has been built on a foundation of sand. Governments have not inspired confidence with their reactions. Gold is a an assurance of something with tangible value. Paper promises have lost the seeming solidity they had in the 90's.
Gold buyers fear inflation, but more so lack confidence in the management of our currency and the promises of the equities market.

Gold: The Last Carry Trade

"Buying into an ideology could cost your family a lot and be a permanent financial setback." Like buying a house because prices always go up? Like investing in the the stock market for the same reason? Like throwing billions into CDO's and subprime?
Gold has done its job as a store of value, keeping up with inflation. Most physical gold buying is not spurred by speculation (futures are preferred for that purpose) but because people recognize that property of gold. Gold can go down, but not to the extent that, say, a share of Lehman Bros or a paper dollar can. The value of a dollar has declined 97% in less than 100 years. Unlimited dollars are now being made available. Is that a desireable quality in a store of value? Jim Rogers has seen it all before and says that we are creating "a hyperinflationary holocaust".