I understand the idea that gold is a ‘dead money’ investment....
But I look at it not simply as a medium of exchange, but as a store of wealth also - the second quality that makes money, money.
If you want to store wealth for the long haul very few things can be compared to gold.
I think of it like a savings account and I am saving to create generational wealth...It’s not a trade. It’s a long, long term investment.
To each his own, right...
What we’re seeing here is worldwide COMPETITIVE CURRENCY DEVALUATION. Gold isn’t rising, people are simply LOSING confidence in their currencies !!
With governments such as Japan, the US, Switzerland, the UK, Brazil, Korea, Taiwan, China and many others internationally devaluing their currencies there is a growing risk of inflation and indeed stagflation.
Free markets are becoming less free with manipulation of currencies and bond markets increasingly common and the likelihood that there may also be intervention in equity and precious metal markets.
The financial crisis is spreading from the private sector and into the public sector as massive private sector debt and liabilities is socialised and monetised.
Governments internationally facing deflationary pressures, particularly from falling property markets, appear to be embarking on competitive currency devaluation battles in order to weaken currencies to stimulate export driven economic growth. This has profound implications for the international monetary system itself which is why some investors and many central banks are diversifying into gold.
The quasi demonetisation of gold seen in recent years has ended and gold looks set to again be appreciated as an important monetary asset.
The ‘Emperor’s clothes’ of today’s international monetary system are being questioned and markets are worried by what lies underneath the international fiat monetary system. The majority of retail investors remain unaware of the growing risks posed by the monetary system but this will likely change in the coming months especially when inflation takes off, which it inevitably will.
......but as a store of wealth......
The implication is that if you have no wealth it can’t be stored and owning gold is therefore not possible and to the masses the devaluation doesn’t matter.
That is why it is being done. Those with gold and other hard assets will ride the inflation up. those who depend on wages will struggle but will also rise as wages rise with the inflation/devaluation. Tax revenue will increase with the increase in wages.
Those holding fixed $$ investments will be the ones to suffer. That would be the banks. They have received their pay off up front.