Quote:
Originally Posted by legion
Correct, you will end up with roughly the same money in real buying terms before and after the sale.
This is as opposed to holding your cash in a savings account, which will be worth LESS in real terms.
|
My thoughts exactly.
From a practical standpoint, gold is a pretty stupid place to put money - it's a largely worthless metal, unless you're a reconstructive dentist or a guy who makes high-end audio connectors or circuitry. It has little practical use. Mostly its value is based in convention because us hairless monkeys have liked sparkley shiny things since the day we learned to walk on two legs. But it's probably a way better place to put one's money than most others these days.
Hyperinflation WILL happen. The pressures building are enormous. They're only being kept in check right now because our economy is in the grip of the worst downturn since the Great Depression (possibly even worse than the G.D. before it's all over, too).
Once any kind of turnaround occurs - real or perceived, it'll blow the lid off of inflationary pressures. I'd bet money on it (and I have, actually).
There are very few really good hedges against rampant inflation. Precious metals aren't a bad one though...