Posted on 12/17/2014 10:39:37 AM PST by blam
December 17, 2014
John Rubino
To say that gold is in a bear market is to misunderstand both gold and markets. Gold isn't an investment that goes up and down. It is money in the most basic store-of-value sense. Most of the time it just sits there, and when its price changes in local currency terms that says more about the local currency than about gold.
But when currencies collapse, gold shines.
Consider the above from the point of view of a typical Russian. The ruble is tanking (no need to understand why -- all fiat currencies go this way eventually and the proximate cause is almost irrelevant). Russians who trusted their government and kept their savings in, say, a bank account, are losing their shirts. But those who own boring, doesn't-pay-interest, in-a-bear-market gold have seen their capital appreciate in local currency terms by about 60 percent in just the past month. They're not "making money," but they are preserving wealth.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
Good!
in before “you can’t eat gold”
Bytes are even less useful.
In before the “If gold is so valuable why are they selling it?” parrots
Soon the precious metals of lead and brass are going tbe very valuable.
That explanation is hollow. If gold just sits there, say in US dollars, you would be better off hiding your money in a mattress. I mean gold still must bear some sort of return.
Premiums at 50% right now in china?
I mean gold still must bear some sort of return.
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Gold is THE universal currency and has been for 5,000 years at least.. It doesn’t matter if it’s a Maple Leaf , an Eagle or a Kruggerand ,, your trading partner sees the intrinsic value... it will still hold value long after I’m dead and buried.
My first real GF survived pirates escaping VN because her family had saved some old gold coins and she was too young at the time to be sold into sex slavery...
She would have been thrown overboard if she has French Francs...
How about "It's amazing gold is still bidding for dollars".
I know someone whose father paid gold to get himself and his family out of China and to Taiwan just before the communists took over. At times, gold can be very handy, if not a lifesaver.
Goldbug ping.
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