Gone4Good
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Sep 9, 2005
- Messages
- 5,381
If on the other hand, you think that there is a real possibility that Mr. Bernanke and/or future Fed chairmen won't be able to reverse QE2 and other ease money policy within 15 minutes like he claims, that debasing of the currency isn't a good thing for the country, or that Chinese, and Arab, others may lose faith in the ability of Uncle Sam to pay back his loans, than Gold maybe a reasonable insurance policy.
Even in that case, wouldn't a diversified global bond fund, maybe held in a foreign account, still be a better alternative than gold?
It seems like the scenarios where gold makes sense are the ones where the entire world melts down, the electronic financial systems break, and the only "stores of value" are things that can be traded in physical exchange. Then a pile of gold would be really handy. Short of that, there are almost always better options . . .
Unless of course we're just hitching our wagons to a speculative ride up.