Tuesday, December 8, 2009
Gold Hype: Why Should You Invest In Gold?
What is the deal with gold. You can’t listen to any conservative radio without hearing gold commercials. Glenn Beck is the biggest nut about gold. When I need personal financial advice, I listen to Dave Ramsey and he says gold is a horrible investment. First of all, according to Dave, if gold is at all time record levels, why would you invest at the high point. You have the smallest chance of a return on gold at this point. Second, and this is the most important part and I think why we took ourselves off the gold standard, what is gold? The gold hypers say that you need to buy gold so that when Armageddon comes, you will have gold to buy things while everyone else has paper. Well, if there is a total financial collapse, I would rather have paper currency as I can at least wipe my rear end with paper. Gold is no different than any other commodity. It is only worth what people are willing and able to pay or trade for it. Gold as a commodity for industry does very little. It, like paper currency, is only a symbol of services rendered. If there is a financial collapse, we will run on a barter system. I doubt gold would have any value unless it could be used to make a product that people would be willing to trade for. My amateur advice is to lay off the gold and pay off debt.
Posted by jrchaard at 1:43 PM