I think you are missing his point. It is one I agree with, to some extent, too.
I mean, what exactly do you DO with gold? Can you go to McDonalds and get that happy meal with it? No. In fact, there isn't anything you can do with gold itself without breaking it down into some sort of local currency. And once you've done that, now you have that worthless currency and NOT the gold.
Quite a dilemma.
Seriously? This has you flummoxed?
If you bought before 0dumbo won the election, it would have cost you about $700/oz... silver about $9/oz. As the gold to silver ratio was about 78:1 ... I’d buy silver.
Today, the ratio is about 52:1 and your 78 pieces of silver would be worth $2106. If you felt this was it, you could buy 1 ounce of gold for $1400, and hang onto the remaining $706 (your original investment) in cash if you liked... Though I wouldn’t recommend it.
Instead, buy the gold with 52 pieces of silver, sell one for $27 to buy lunch... And hang onto the remaining 25 pieces.
Personally, once the ratio hits 45:1, I’d convert to gold and wait for the ratio to go back up before jumping back to silver.
I swapped a one oz. coin for a goodly quantity of ammunition.
My father in law, buys tenth ounce gold coins rather than the ounce variety. They are small enough to use as “local currency”. I like the idea, except that now is not gold buying time IMHO. His 30 or so tenth ounce coins are worth about 140 dollars each, instead of the normal 35 dollars, and will always be worth something even when paper is worth nothing.
I'm missing your point. I can't take a share of IBM, a CD, my 401K to McDonalds either but have to turn it into worthless cash.