Thread: Gold Buying
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Old 13.10.2010, 21:29
ktm_paul ktm_paul is offline
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Re: Gold Buying

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I'd define an LME contract as a financial asset. The price of which can go down. Not really something to mortgage one's home in order to speculate on.

The central bankers believe that gold is default or catastrophe insurance. The Russian, Indian & Chinese central bankers are buying it as a cash (dollar) hedge. Personally I choose to weight their view over that of an anonymous poster on the interweb.
Not sure why you would define LME copper as a financial asset. Certainly not my understanding. If you hold it to expiry they will give you the copper in a warehouse.

If you believe in hyper inflation - you should do just that. I fail to see why you would not. I do not believe in hyper inflation.

Please remember that a currency is only worth something because others chose to recognize it as having value. The same can be said for gold (aside from its very limited utility).

I would suggest we agree to disagree.

PS your implied negative comment about anonymous poster was uncalled for - I simply asked you to explain how it is a default or catastrophe hedge. you replied because others think it is...ironic.
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