Trinitymaster

Massive Inflationary Pressures Will Lead to Uptrend in Gold

Even if you're 100% correct, there is still no guarantee of a positive outcome.

1) People who invest in Gold securities have the mistaken impression that they actually own that much gold. That's like buying Ford stock under the impression that you now own part of their factories.

2) Gold (usually) goes up during periods of inflation-
BIG FREAKING DEAL! Everything else goes up as well.

3) Rich people who admire Gold are the ones that give gold its highly subjective value. Case in point: Amber and aluminum were once considered more valuable then gold. A quick glance at the history books should also remind people of how valuable spices once were.

What Is Going On With Gold?

Gold is worthless except to those who will buy it from you; and they won't pay full value.

Gold only has real value when it is converted into currency.

Besides- we don't really know if the gold we invest in actually exists. What is to prevent a company from buying $100 million worth of gold, sell securities tied to it, and then sell the gold out the back door?