Thread: Gold Buying
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Old 13.10.2010, 21:34
rainer_d rainer_d is offline
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Re: Gold Buying

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LME copper isnt a financial asset - it is a commodity.

http://highered.mcgraw-hill.com/site.../glossary.html

how is a property of gold to be default or catastrophe insurance? that is my original point - it is only because others think it is. at the end of the day - it have very little utility and thus inherent value.
Bank-notes can be printed. Gold cannot be printed. It can be mined, yes. But only a finite amount in a specific time-period.
Paper-money is only worth something, because people belief they can buy something in exchange for it (that's why the grocery store accepted the note).
Nowadays, there is concern that all the money that has been printed by governments around the world cannot buy as much as it used to do (because there is so much of it).

That's why you turn to gold IMO. It's a finite resource and relatively immune to inflation (also very dense (easy storage) and almost indestructible - no natural devaluation as with food)
Currencies are really only a means to facilitate the exchange of goods (well, they used to be, before people started speculating with them...).
It's perfectly possible to exchange goods without the use of a currency (trade the meat of a cow for six and a half hours of your consulting work...).
But it's complicated.
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