Why People Don't Buy Gold

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Shitty shitty investment. Don't get caught up in another bubble. Don't invest in ideology.
 
Gold really shouldn't be anywhere near as valuable as it is. It's a pretty useless metal. Lead and iron are far more useful.
 
Grand Wizard Watermark said:
The very fact that gold is so valuable and yet so useless is what has made it usable as a currency in the past.
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Yes, but in this day and age the attached value is meaningless. I'd much rather back our currency in a useful and valuable material. Iron, copper, uranium or silver would work well for America (and Russia, the only other country I care about).
 
Beware The Battle-Cattle said:
Yes, but in this day and age the attached value is meaningless. I'd much rather back our currency in a useful and valuable material. Iron, copper, uranium or silver would work well for America (and Russia, the only other country I care about).
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Currency shouldn't have meaningful value. Putting investment value and currency value into the same unit pollutes one function or the other. Currency really only has value because people think it does; when this consensus is shaken, it can cause hyperinflation even if no new currency is being printed. Having value that doesn't seem to be backed up by anything real is a problem with an investment, because it points to a bubble. But it's not a problem with a currency, because the value of the currency isn't expected to go up constantly. It's actually expected to go down. This leads to a situation in which people store their wealth in valuable investments and convert to the currency when they need to buy something else. Which is as it should be.
 
Stocks in companies that make basic necessities are a better investment, IMHO. No matter what happens to the economy, people will always buy soap.
 
Beware The Battle-Cattle said:
Yes, but in this day and age the attached value is meaningless. I'd much rather back our currency in a useful and valuable material. Iron, copper, uranium or silver would work well for America (and Russia, the only other country I care about).
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If you are using it to back your currency, then you cannot use it for its useful purpose.
 
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