It's the End of the World as We Know It and I Own Gold

Source:

The real reason to own gold is that governments are in the process of debasing their currencies in order to alleviate the pain of souring economies that were built on a fundamentally flawed principal - that more easy money can solve the problems created by prior easy money.

...This leaves basically two groups of gold owners - those who fear a financial catastrophe and those who fear the debasement of paper money...

The financial doomsayers seem to believe that the metal is some sort of insurance against the wheels falling off of the global financial system (or, perhaps, the outbreak of another major war ... or both), in which case, all your other investments are likely to go down the tube...

As for the collapse of the financial system, some would argue that over the last ten days the global financial system is already collapsing around us, yet the yellow metal is worth only a little more than it was before the collapse began - hardly enough to make any difference in any post-collapse existence, though that could surely change very quickly.

While anything is possible, it's hard to imagine this kind of extreme scenario playing out anytime in the near future, but, if it does, you will surely be better off owning gold coins than U.S. Treasury bills...

...Six or seven years into a gold bull market where prices have gone up for each and every one of those years (is there any other asset that can make that claim?), most people still don't understand why they should own gold. It's not because it's insurance against everything else tumbling down around you and, despite what traders think, it's not because the price has been going up.

The real reason to own gold is that governments are in the process of debasing their currencies in order to alleviate the pain of souring economies that were built on a fundamentally flawed principal - that more easy money can solve the problems created by prior easy money...

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