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<p>[QUOTE=&quot;InfleXion, post: 1631331, member: 29012&quot;]Gold may not have much worth from the standpoint that it doesn&#039;t do anything. Warren Buffet often likes to point this out. This is fine, since it simply reinforces that gold is strictly a monetary metal. This makes it one of the easiest things to invest or not invest in based simply on monetary policy. Monetary policy clearly dictates that gold is a good investment right now in spite of it&#039;s relative lack of usefulness. </p><p><br /></p><p>Gold is not only a commodity, it is also an element. To classify gold as only a commodity is short sighted, as it differs from other non-metal commodities in that it cannot be reproduced. Because it is in finite supply it should not be treated with the same logic as other commodities which are reproduceable. </p><p><br /></p><p>You are of course entitled to your opinion, however the reality of our monetary situation being perceived as a scare tactic is not anyone&#039;s fault except for those who are devaluing the currency at a record pace. If it&#039;s scary, well it is what it is. Buying gold won&#039;t fix any of the problems, but it will ensure you don&#039;t get robbed by inflation or counter party risk or default. Gold is not an ideal currency, but it is ideal for money. One of the rules for the definition of money is that it is a store of wealth. Paper currency does not fulfill that requirement, so anyone who doesn&#039;t like losing their buying power to inflation will need to hold commodities, stocks, or hard assets. </p><p><br /></p><p>Gold and silver happen to be in that realm without also having counter party risk, something anyone who is concerned about the fairness and stability of our markets should appreciate, and something that commodities and stocks cannot provide. Sure people can save a few bucks playing the ETFs, but the counter party risk involved defeats the purpose of investing in PMs unless one is only concerned with paper profits. One of the primary benefits of investing in PMs is protection from just that, for the buy and hold crowd. If someone wants to flip metals like houses then ETFs will save them a lot on the spread, but that&#039;s how you end up getting burned. </p><p><br /></p><p>It&#039;s odd that you have pointed out that the monetary system is the sum of the value of a nation&#039;s worth, yet do not acknowledge that gold is an aspect of that worth. Gold is where the surplus value goes when a nation no longer has any need for any goods or services in particular, for those that produce more than they spend. </p><p><br /></p><p>It may very well be a disaster going back to a gold standard, since the currency has been so devalued, but the fault would not be on the gold standard which would simply enforce rules in a system that survives by breaking them, and a system which will lead itself into disaster eventually regardless because it requires free market capitalism to cease to function. </p><p><br /></p><p><br /></p><p><br /></p><p>So it&#039;s unfair to put the blame on a gold standard even if that would hasten the outcome. Once that happens, one way or another, a gold standard will likely emerge out of necessity since nations will still need a way to measure the value of their trades when faith in paper is eventually lost. This could take a few years, which is a good thing for those of us who still want to buy gold at undervalued prices.[/QUOTE]</p><p><br /></p>

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