2010-05-13 09:22![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
digitaldiscipline
digitaldisciplineOver on FB, a friend shared this link: http://www.thesimpledollar.com/2010/05/10/why-you-shouldnt-buy-gold-as-a-hedge-against-devastation/
In reply, here's what I had to say:
"I think what a lot of people (such as the author) overlook is that people who invest in precious metals or other similar commodities are not hedging against an apocalypse, they're hedging against inflation and basically betting on the purchasing power of the dollar to weaken. Thus, if you bought gold two years ago at $800/oz, and sell it today at $1200/oz, you haven't made any new gold, but you've got 50% more dollars (which you can use to pay for things you need, or pay off debts, or whatever).
I can't be the only person taking this approach (though I'm doing it with silver, because I can't afford gold)."
No, it's not exciting, or sexy, but, what the hell, it's working.
In reply, here's what I had to say:
"I think what a lot of people (such as the author) overlook is that people who invest in precious metals or other similar commodities are not hedging against an apocalypse, they're hedging against inflation and basically betting on the purchasing power of the dollar to weaken. Thus, if you bought gold two years ago at $800/oz, and sell it today at $1200/oz, you haven't made any new gold, but you've got 50% more dollars (which you can use to pay for things you need, or pay off debts, or whatever).
I can't be the only person taking this approach (though I'm doing it with silver, because I can't afford gold)."
No, it's not exciting, or sexy, but, what the hell, it's working.
