tifosi77 wrote:If the SHTF and we aren't using paper money for things anymore, the only thing people are going to accept for their goods and services are other goods and services in return. It will be a true barter economy.
Except for the fact that humans were using gold and silver as a medium of exchange for literally thousands of years. Compared to the history of gold and silver as money, paper money is a toddler and pure fiat money is a newborn.
KennyTheKangaroo wrote:how many people own actual gold bars compared to buying GLD or some mutual fund or some fund that buys into gold futures anyway?
I take physical possession of all of the gold and silver I buy. Admittedly, I buy relatively small amounts (~$200 a month), so it doesn't take up that much space. I also just happen to have a safe in my house.
Lead will be worth more than gold in the short term if you know what I mean
I believe in owning all three of the precious metals: gold, silver, and lead. That safe isn't there just for the coins.
columbia wrote:1.) It has no internal rate of return, aka dividends or interest.
2.) There's no inflation protection, unlike say TIPS, if that's what you're after.
#1 is true. Gold is not an investment. Gold is money, and money by itself is not an investment. The attraction for gold is that unlike our paper money, it has inherent worth and will never go to zero in value. #2 is also true, to an extent. As someone who believes inflation is solely a factor of the increase in the amount of something in circulation, gold and silver are both subject to inflation via the fact that more of them is constantly being mined. But it's not a particularly significant rate; gold and silver are valuable in large part due to their scarcity. It would take something like a new find akin to the California gold rush to significantly devalue gold through inflation.