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Message:: [QUOTE="doug5353, post: 2129486, member: 73555"]The sense of it IS, diversify your assets.  If everything you own is tied to paper dollars, or paper any-currency, and something goes wrong, then you're screwed.  In general, your income is not going up as fast as prices for essentials.  That is the whole point of PMs, to preserve the purchasing power of your liquid assets.  It's a waste of time discussing this, you and Junior and a few others are in love with paper dollars.  You learned nothing from French assignats, Weimar million-mark bills, post World War II Hungarian coins denominated in the billions of forints, etc., where the government(s) acted in their own interests, not the people's.  You need look no further than newer laws like Dodd-Frank: "In addition to the FDIC encouraging big banks to seize deposits during bankruptcy to maintain the stability of the banking system as it protects the FDIC Insurance Fund from being totally depleted by over-sized bank failures, depositors in the U.S. face an additional risk of loss under U.S. bankruptcy law among all sizes of banks that invest in derivatives.  During bankruptcy, derivative counterparties receive “super-priority” status above all other creditors, including depositors.  This means that derivative holders will get all of the bank’s assets before any other creditors, including depositors, are paid..." This is a high price to pay for failure to diversify.  The current notional value of global derivatives, by the way, is ten times annual World GDP.  A 1% default event (10% of global GDP) would mean the end of the good life for decades. Clearly, if the timing and inflection points of the various bullions were logical and predictable, we'd all be millionaires, of course.  The best a middle-class citizen can do, is diversify into the face of an exploding money supply, which can't end well.[/QUOTE]

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