Lets go back to Economics I at any University that teaches it without interference from left or right.
As a store of value which is better right now?
Real Estate? In countries facing siege, economic hardship or terrorism. Not everyone faces this but there are few democracies in this world and many that qualify as democracies have govts manipulated by banks and financial interests that feed off democracy. The US bailout of banks is a good recent example.
Cash in the bank? What about inflation and the danger of banking failure? Here in NZ where I live we have had questionable finance companies fall over like ninepins. Most losing investors would heave been better off in the last 4-5 years with some Krugers under the mattress.
Currency under the bed? OK maybe if needed in a hurry and you don't face a German or Zimbabwean problem. Trying to take though a seriously big chunk of it into countries like Australia or NZ runs huge risks.
Gold? Can be stolen from you if you disclose where its stored. It rusts not and there is no denying it is popular amongst many non-western cultures now in the ascendancy as a store of value (and wealth). It may also soon regain its popularity with the Western reserve banks...
Lets not get carried away but it still holds (imho) a position in any balanced portfolio. Gold stocks as well because its hard to steal the stuff when its still underground.
Perhaps some forum contributors can confirm it was Henry Ford who said something to the effect that if the man in the street really knew what was going on in the financial world there would be a revolution tomorrow. The internet is with us and the m i t s maybe somewhat less manipulable than in times past. But then again there is TV,
I was around when gold at $35 went to $800+. Why is $950 to $3000 such a big deal?
Who will win? US$ or gold? Read history. Pick your side.
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