Kasz216 said:
richardhutnik said:
Kasz216 said:
richardhutnik said:
Kasz216 said:
No one said gold doesn't have bubbles. Just that gold is resistant and will never be worthless and always retain some value.
Don't be shocked if gold recovers actually fairly quickly.
Afterall the silly rise of Bitcoins more or less shows how much people trust paper currencies now. |
I am not going to say that tangible assets, as opposed to paper ones, don't have value. Just gold is made out to me some sort of universal place to park results of financial transactions, in order to make sure you are safe. But, what I see is people merely drive the price up and make it a bubble, as about anything else. Even real estate, which has more real value, can be subject to the bubble nature. There is this distortion that goes one the moment it starts to get hyped up.
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It isn't though. Gold is a focus. So is Silver though.
They are because they are essentially the most eaisly attainable/valuable matrieals.
Also... i'd argue that gold has more real value then real estate.
5 pounds of gold in LA, 5 pounds of gold in Detroit. It's more or less worth the same.
Real Estate? Good luck giving away real estate in Detroit.
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Note, when I say real estate, i mean property with some value to do something constructive. Gold has little intrinsic value at this point. It makes a near perfect metal to give away because of its attributes though. But, like all currency, it depends upon people wanting it. I am of the belief the perfect currency is something with no intrinsic value (so it doesn't get consumed or used) BUT everyone wants? Think for a minute how the heck something with no intrinsic value is something that everyone wants. That attribute shows up heavily in bubble situations.
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Not sure i get what you mean. The only kind of real estate that would hold that kind of value would be farmland.
Which would be a TOTAL pain in the ass to own for almsot anyone not a farmer and be a hell of a lot more work for the average consumer or investor.
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Land possessing natural resources that can be acquired, is also of value. Land with equipment for manufacturing is also very important. Land without resources and not developed, really isn't at all. Land gets its value from the commerce associated with it, as do about anything. If this said commerce ends up adding value to the economy and provides additional goods and services to people, then that land is of value (just like a person). If the said item doesn't do this, and merely is exchanged, it is currency. Yes, it serves a certain function, to address the issues raised with barter, but really doesn't add anything to the economy, which is why more currency with less goods ends up producing inflation.
And gold is a pain to store also. it can get stolen and whatnot. And above all that, it is subject to Ponzi, next sucker schemes where the entire market turns into buyers hoping to find other buyers to unload goods on.
Again, the problem with currency is this: The perfect currency is something everybody wants, but has no (or easily replaced) intrinsic value.
