Why would you invest in gold?
Why does gold hold it's value and what are the properties of gold which give it the high value compared to other metals?
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0relaxedlee postedGold is a precious metal. It is extremely rare, for example you could put all the gold ever found in a box 150 feet cubed.
It is also the most conductive metal on earth, meaning it is desirible for eletrical parts and computing etc.
Another thing is that there is a limited amount of gold available to trade, therefore it cannot be mass produced and the price is left stable.
Posted on 23 October 2008 |
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159JoeEasedale posted
In fact the US still has a good chunk of gold as do a number of other countries. The IMF is the third biggest holder.
If all major currencies come under threat then Gold should remain stable and rise against them all. If the worst happens (and we are miles away yet) and the government decides to devalue and reissue the currency -call it the NewPound which trades at 10% of the value of the old then the effect is that your Old £20 note (and your debts and your savings)is suddenly worth £2 Newpounds. But your £20 of gold bought previously with old pounds will be worth £200 new pounds.
Its a nightmare scenario but not impossible - see Weimar republic circa 1920 or the former Confederate States currency before & after Appomatox.
Its all theory for us of course, but holding a modest percentage of your portfolio in Physical Gold is a true hedge fund, nothing to do with those that go by the name these days.
Posted on 24 October 2008 | Love 0 loves
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