Kevin_S

U.S. Treasury Owned Gold: What Can It Buy?

It's almost an old man's argument. If you borrow money from bank to do business and buy home, you don't need to have enough gold at home to cover your loans and business activities. All you need is the strength of the businesses, and a few months of cash reserve.

All gold mining companies' profits combined are less than that of P&G. If you really want to own gold, own gold itself (the metal) or GLD. Gold keeps flying out of the mines, leaving you essentially nothing, quarter after quarter. Let's see where gold (metal) and miners go from here. But when things turn around, and people start moving money out of gold, it's kinda a mess.