Hi Tangs I'm no expert either but I have in the past done some homework on the subject enough to be let down miserably when I was a gold bug. But first let me address ridrx post. If you had bought gold 15 years ago as you said, gold was below $600 in AUD, now it's $1870. I don't know about you, I wouldn't call that a bad investment. Thats a 311% increase which is just keeping up with inflation, Heck I'd want to do better. 15 years ago If you had invested in WOW you would be up 1000%. NCM 460% WES 650% RMS 1000%
Gold is used in some electronics so it does have some industrial uses, it also is a big part of the jewelry industry. I think by far it is used as a store of wealth for governments and that is where it will stay. People who think that they can hoard gold and that will make them well off maybe sadly mistaken. There is Legislation stopping you from holding gold if there was a currency crisis. If this Legislation was enacted and I might add it never has been enacted in this country, you would have to hand all your gold over to the Federal Government at a price the reserve bank sets. Yep back to Fiat currency for you. I'm just going off memory as I don't want to go through this stuff again. So correct me if I'm wrong. You wont be able to trade gold sell it or take it out of the country. The only people able to trade or hold gold will be businesses that use it in their everyday running like gold miners. You will be given a certain amount of time to hand in the gold if not you will be put up against a wall and shot. Nah only kidding. You will be fined. OK just had a quick look. This is the banking act of 1959. Here's the link go to part 4 Gold https://www.legislation.gov.au/Details/C2011C00034
Gold is a great commodity to trade not to hold and the reason I say that is most gold bugs think that the US dollar will become worthless at some point and the only thing left will be gold. But if it ever gets to that point, guess what you will be back to Fiat currency again. I don't think this will ever happen because as you've said tangs the US have intervened to dampen the price of GLD to protect there currency. I'm sure it happened before in the USA that it was illegal to own gold.
That's my bit Good luck to all RMS holders
RMS Price at posting:
73.0¢ Sentiment: Buy Disclosure: Held
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