Jesus Christ!
I wonder what happened to all that talk about auditing Ft. Knox?
Canada has no gold reserves, and “chose to invest in financial markets instead…”
Never hear anything about that either…
I’m not a gold bug mainly because I can’t afford to be. I just wonder where all the gold is going right now. There’s a biblical parable where all the locusts swarm into Egypt, get into the grain silos and supplies… and they eat everything. Methinks the locusts are having a go at us again.
Individuals buy gold as a hedge against the entire system of printed paper going into orbit, then being worth nothing. Should paper currency fail, precious metals will survive quite nicely, as will lead.
ReplyDeleteThe situation at Ft. Knox troubles me. No one who is willing to talk to the general public has been inside, and no audit has been done. While I don't believe the vault is empty, I wouldn't be surprised if a significant amount of gold was missing. If the audit found that a lot of the gold had evaporated - or never been there in the first place - the panic would have a significant effect on the U.S. economy.
My basic problem is that Wal-Mart doesn't really accept gold. Nor does Home Depot. Nor does anywhere else. And if you're bartering one outlaw to another, who has the scale and the necessary equipment to assay the gold weight and purity? How do I know that's not a brick of lead with a very thin layer of gold leaf on top? We still need a functional economy where you can legally exchange the gold back to cash in order to buy anything.
ReplyDeleteThat said, I've never had the financial discipline to buy gold myself and save it either. Knew a guy that did, had multiple gold bars hidden in his house. Then the house fire happened. Oops.