I was against gold as an investment for a long time. I held the Buffet view, that you can't eat it, it does not produce anything, it basically sits their shiny and for some reason we value it. It does not make sense to invest in.
Over time my mind has changed. As an economic instrument, in our day and age, it is interesting and worthwhile because it can't be manipulated. Those shiny little lumps can't be counted different or special accounting used that all of a sudden increases the amount on hand. It is finite, mined out of the ground, not printed at the whim of man. That finiteness is what is valuable. I suppose the argument could be made that you could use other things of finite availability just as easy, but they have not been recognized as a money for thousand of years but most all civilizations. Throughout history you see cultures that moved away from gold ultimately be forced back. Unless we (the world) gets its house in order financially (unlikely), it seems probable that Gold will come out the winner yet again.
Whither Gold
http://www.zerohedge.com/news/whither-gold
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Whither Gold
http://www.zerohedge.com/news/whither-gold
---
Sent from Zite personalized magazine iPad app.
Available for free in the App Store.
www.zite.com
Thanks Billy Bayne
