Gold recently hit $950 an ounce which is great because I own GLD. GLD is the stock ticker symbol that allows you to own gold with out actually having to worry about the transportation and security of owning actual gold coins. GLD trades at roughly 1/10 of an ounce of gold. That way it allows you to buy smaller amounts rather then buying 10 coins at a time which is usually the minimum.
Now why gold you ask? Gold does not do anything, it only holds value, and pays no interest. At least hold cash and get the bank to pay you money. True gold goes not earn interest, but have you heard the phrase “A dollar does not buy what it used to.” Surely you can remember a time when gas was $1 a gallon and a $20 was a lot of cash to have in your wallet.
Today we all know that gas costs more dollars and $20 will hardly get you a round of drinks at the bar anymore. The reason for this of course is inflation. The Treasury Department controls the amount of money in the economy, and the cash pipeline can be turned on and off with relative ease. This is not true for gold. The government is able, and often does print lots of dollars to do such things as head of the recession and the infamous credit crunch. The entire world, let alone the U.S. government would have a very hard time mining enough gold to devalue it anything beyond a marginal amount.
This friend is why I own gold rather the US government currency. I am not a doomsayer, or government hater, I just think the dollar is weak and will only get weaker to pay our future obligations, things such as Social Security. Because the government is either unwilling or unable to change SS when the baby boomers start to draw from the fund, it will just print dollars to give to them. All the while those dollars will be worth
less and less.
Gold is a great long term asset to own as an investment. With the weakness of today’s dollar, and the up coming election it might even make a good shorter term investment. With inflation creeping up to 5% and fears of a recession will continue to drive up the price of gold. With that printing press running at full tilt printer paper with Ben Franklin’s face on it, I only see the price of gold increasing.
hmm, yep, still not interested in this investing stuff. i guess that is why those advisors are still in business. i had a brief notion to handle my finances myself, but i see now that i am completely inept and plan on going back to paying someone to manage my money. seems safer that way.
Sounds like someone’s been reading the PPP.
Dude. Write some more posts.