Why should I invest in gold?

    0  Views: 1366 Answers: 2 Posted: 7 years ago

    2 Answers

    You should invest in gold for many reasons. There have been many books written about it. First of all, it has been a store of value for thousands of years, while many currencies have essentially "come and gone". All of the gold mined since its discovery would fill the inside of an average barn.  Many countries have been printing money with nothing backing it up, creating money "out of thin air." These are referred to as fiat currencies, of which, the U.S. Dollar, is one. If you have non-precious metals stocks, and they exhibit a marked decline, having gold or select gold stocks, can counteract that decline. After the crash of 1929, gold stocks did exceptionally well, not only with capital appreciation, but with hefty dividend increases as well. China is a major buyer of gold. It's the world's largest producer and all that's produced in China is sold there. They're smart. After the revolution, wheelbarrows of currency were used to buy what before, were the cheapest necessities. Think of currency debasement, where several zero's were added to currencies and subsequently erased (not worth the paper they're printed on.") Lastly, owing in part to the derivative market,it is widely speculated that there is not enough gold available for delivery to those whom the gold is owed, should they want their gold back. Contract settlements, for the most part, have been in cash. What's going to be if there isn't enough gold? Just another reason why the price will go "to the moon". 

    I have gold that I mined....a few ounces. It was easy to just go out and pan some up in a creek for most of my life. Made a tidy income for years and made most of it into jewlery. Now the government wants all mining shut down here and press everyone into some form of slavery rather than getting by on your own work. The gold I have is very useful because gold can be used to join two dissimilar metals/materials together cleanly and strongly. Using a little bit of gold, like solder stainless steel, titanium, Niobium, carbide, etcetera...can be simply joined by soldering. Typically the materials need to match in shape at the join and just a tiny bit of gold sweats into the gap. Or you can electroplate the join area on both pieces and apply heat and pressure. There are many other techniques and applications as well. Titanium frame eye glasses are joined with gold as well. I like all the applications I have for it which are far more extensive than I have mentioned here. But then, to me, the value of gold is in its application more than money for ounces of the stuff in a bank vault. That seems like a real waste of time and resources.

    Top contributors in Personal Finance category

    Answers: 222 / Questions: 1
    Karma: 3960
    Answers: 71 / Questions: 0
    Karma: 3840
    Answers: 3 / Questions: 0
    Karma: 3330
    country bumpkin
    Answers: 43 / Questions: 0
    Karma: 3030
    > Top contributors chart

    Unanswered Questions

    Answers: 0 Views: 4 Rating: 0
    what game is awsome
    Answers: 0 Views: 12 Rating: 0
    Loan in Norway
    Answers: 0 Views: 6 Rating: 0
    Answers: 0 Views: 8 Rating: 0
    My computer mouse and touchpad sometimes dies.
    Answers: 0 Views: 12 Rating: 0
    > More questions...