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<p>[QUOTE=&quot;fatima, post: 1332894, member: 22143&quot;]Who says gold has value? Central banks and governments.&nbsp;&nbsp; </p><p><br /></p><p>Your argument is that because there is risk to holding gold and risk to holding stock, then these are equivalent investment risks.&nbsp; They are not.&nbsp; &nbsp; The central banks that issue the currency,&nbsp; stockpile gold to use as a currency amongst themselves.&nbsp; They don&#039;t hold stocks, they hold gold.&nbsp; They do this because their respective governments require them to hold real assets to back their base currency.&nbsp; Hence, the price of gold is related to the supply of currency.&nbsp; (Unlike Stocks)&nbsp; The real question is whether the circulation currency will fall to the point that $300 of it will buy an ounce of gold.&nbsp; There is nothing to suggest the governments are going to do anything at this point than print more money.&nbsp;&nbsp; Therefore, you are not going to be seeing $300 gold again.&nbsp; A collapse of gold prices will involve global events.&nbsp; </p><p><br /></p><p>In comparison the value of a stock is worth nothing more than what people think the company is worth.&nbsp; Bad management can make any specific stock close to worthless overnight. A collapse of a stock price can happen in a board room.&nbsp; &nbsp; It&#039;s a risk that is several magnitudes higher than that of owning gold.&nbsp;&nbsp; </p><p><br /></p><p>These are not equivalent situations.[/QUOTE]</p><p><br /></p>

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