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<p>[QUOTE=&quot;Yankee, post: 632695, member: 18618&quot;]This is how I explain it. Say a person buys 10oz in gold in coins now at @ $950.00 in Fed Reserve Notes…10 x 950 = $9500.00 and this person stores them in a home safe. And another person deposits $9500.00 in FRN’s into a savings account at his local bank. Both are expecting to hold these long term. Let’s say for the sake of argument that both persons are homeowners who bought their homes at the same time at about the same price with the same money down with a fixed mortgage rate at 6% and both hold relatively safe jobs with about the same pay…let’s say $50,000.00 per year. Both have about the same bills to pay each month. Let’s say that after 10 years gold is at $3000.00 per ounce value in FRN’s and the savings account holder receives 1% per year interest in his savings account. The person who bought gold would have an investment worth $30,000.00 while the savings account holder would have an investment worth $10493.76. Now let’s say that at this time both persons lost their jobs an needed their investments to live on until they found employment again. Which persons investment situation would you rather be in? Both are valued in FRN’s but the gold investors situation is far preferable to the savings account holder. You could even recalculate this scenario using gold price statistics from the last ten years and stock market averages for the last ten years and the older of gold comes out ahead. Gold is a storage of VALUE! While FRN’s will reflect a diminishment of value through inflation the value of gold will rise to reflect it’s value against inflation. This is why you receive interest or dividends when holding investments in paper long term…you have to have some reason or reward (or bribe some would say) to park your investment without it losing it’s value. Gold pays no interest or dividends because it owes nothing. It is a safe store of VALUE against fiat currencies!![/QUOTE]</p><p><br /></p>

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