Quote:
Originally Posted by Vendot
Gold is definitely not an investment and its pretty volatile but it is there to hedge against downside risk and for that reason, having a small proportion of gold is a good diversification. Its also great to play with if youve got gold coins - they sound nice if you jangle them in a bag.
God forbid that currencies really do collapse, which is unlikely to happen, then gold will rise dramatically and offset some of your losses as people ditch paper currencies. On the other hand, if things really improve a great deal in the world economy, gold might fall in value quite quickly.
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Inflation will happen. There has been too many federal reserve notes pumped into the world. China is about to sell off large amounts of FRN to fund their own stimulus packages. We are printing FRNs at an alarming rate. Obama plans to print 1 trillion more in the first 2 years he is in office just for the roads!
