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<p>[QUOTE=&quot;JoeSmith, post: 737958, member: 18021&quot;]In the late 1990&#039;s I was making good money and building my 401k.&nbsp; Just because I go against the crowd, I put 10% of my money in gold and the rest in mutual funds.&nbsp; Today that 10% is half (gold went up, mutual funds went down).&nbsp; I hear economists, financial planners and the like saying I should sell some of my gold and put it into mutual funds.&nbsp; </p><p><br /></p><p>I believe the field of economics is &quot;junk science&quot;, its invalid just like astrology.&nbsp; Its largely because economists talk about things in terms of dollars.&nbsp; If I put a new roof on my house, and my neighbor water-proofs his basement, there has been no economic activity.&nbsp; But, if my neighbor puts a new roof on my house and I water-proof his basement for him, we&#039;ve traded work, which is economic activity.&nbsp; However, this economic activity is illegal, because neither one of us is going to claim that we had income, we&#039;re not licensed to do the work, we could sue each other.</p><p><br /></p><p>The collapse of the dollar isn&#039;t a &quot;black swan&quot; event, because we can see it coming, we know its going to happen.&nbsp; Its happened in other countries in the past.&nbsp; The next terrorist attack on US soil won&#039;t be a black swam event.&nbsp; What will that do to the price of gold?</p><p><br /></p><p>It somewhat amazes me to see everyone, economists as well, getting giddy about the stock market.&nbsp; In good economic times, like the 1980&#039;s and 1990&#039;s, stocks went up, and people sold their gold to buy stocks, hence gold went down.&nbsp; Today stocks are going up and gold is going with it.&nbsp; Well, if people aren&#039;t selling their gold to buy stocks, where&#039;s the money coming from?&nbsp; Its being printed, created from thin air.</p><p><br /></p><p>Here are some possible black swan events:</p><p>1) Our government (you know who I mean) suddenly decides that our march toward socialism is a bad idea, they all become Reagan conservatives, and our economy recovers.&nbsp; NOT BLOODY LIKELY.</p><p>2) We continue our march toward socialism, and actually become a socialist utopia.&nbsp; For the first time in history, socialism fulfills its promise and brings prosperity to all.&nbsp; NOT BLOODY LIKELY.</p><p>3) The voters see the light and elect Reagan conservatives who bring back prosperity.&nbsp; This happens in spite of the fact that even today the great depression is blamed on Hoover, and FDR is blameless.&nbsp; NOT BLOODY LIKELY.</p><p><br /></p><p>I can&#039;t buy any more gold.&nbsp; I had a hard time buying a gold buffalo for $650 2 years ago, thats twice what I paid for my other gold.&nbsp; So I can&#039;t pay $1000 for gold now.&nbsp; I&#039;m just glad I got some when I did.[/QUOTE]</p><p><br /></p>

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