Author Topic: Why buy gold?  (Read 15377 times)

ERICOPOLY

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Re: Why buy gold?
« Reply #70 on: September 01, 2010, 04:59:51 PM »
In summary, I was exploring gold's viability as the only commodity backing it.  You guys were insistent on changing the topic to one where it's not the only commodity backing it.  And I got a lot of rude "you either get it or you don't" flippant statements which really adds a high degree of value to the discussion IMO.

If you have an issue with the rude flippant statements, take it up with the appropriate poster. It has nothing to do with me. Please point out where my comments have been rude or flippant.


I wasn't taking it up with you.  However you referred to a point that "Broxburnboy and I were trying to make" in your post (the one I replied to) and I figure by directly putting his quote in there would be absolutely no confusion as to who I'm talking about.  He did it to three posters I believe (not just me).  At one point I believe you said I didn't properly address a question of his -- look, if somebody is going to act like an ass I don't feel it deserves a reply, but I replied to him anyhow.

In your own words, "I am exploring the limitations of a finite supply of money." Is it not acceptable to respond to this comment by giving examples of how the supply of non-fiat money need not be finite?

Yes it's perfectly acceptable.  You can have that conversation with Broxburnboy or whomever if you wish about non-finite money. But don't make assumptions that you need to teach it to me if I am silent on the topic (you told me I "missed the point").  I didn't engage you on that topic because I'm not thirsty for new knowledge about it.  I have no disagreements with anything you said about it, except your assumption that I missed your point.  I don't believe I passed any opinion whatsoever about non-finite currency backing, nor do I feel required to do so when I am probing about limitations of finite currency.  I never generalized about all non-fiat money, I very specifically spoke only of gold and it's finite nature.


« Last Edit: September 01, 2010, 05:15:18 PM by ERICOPOLY »


stahleyp

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Re: Why buy gold?
« Reply #71 on: September 15, 2010, 07:53:06 AM »
I thought this was an interesting quote from Seth Klarman. I wanted to share it with you guys.

"Gold is unique because it has the age-old
aspect of being viewed as a store of value. Nevertheless,
itís still a commodity and has no tangible
value, and so I would say that gold is a speculation.
But because of my fear about the potential debasing
of paper money and about paper money not being
a store of value, I want some exposure to gold."

Paul

turar

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Re: Why buy gold?
« Reply #72 on: September 15, 2010, 10:16:37 AM »
Do you have a link to the full interview/article for that quote? It seems to me he's not talking about himself there, but as a hypothetical third-person.

stahleyp

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Re: Why buy gold?
« Reply #73 on: September 15, 2010, 10:34:06 AM »
Do you have a link to the full interview/article for that quote? It seems to me he's not talking about himself there, but as a hypothetical third-person.

This is from a previous post on the board. Page 6, left side. Hope this helps!

http://www.gurufocus.com/news.php?id=106850
Paul

ebdem

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Re: Why buy gold?
« Reply #74 on: October 15, 2019, 09:42:33 AM »
Maybe this interview gives some insight on the question: Why buy gold?
https://www.youtube.com/watch?v=kuiUq_TCRJ0

cherzeca

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Re: Why buy gold?
« Reply #75 on: October 15, 2019, 10:16:04 AM »
if you compare GLD to SPY over the past 15 years or so, you will see that one outperforms the other depending upon equity market performance generally...unsurprisingly.  so if you think the market will tank sometime in the next year or so, buying GLD makes sense.  but if you don't think so, or like me you dont have any strong conviction one way or another, I think GLD as a hedge only, as opposed to a sizable investment allocation, makes sense.  I think you have to be a pure empiricist about this and not get bogged down in MMT theory or helicopter money analogies, fwiw

Maximu$

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Re: Why buy gold?
« Reply #76 on: October 20, 2019, 09:28:55 AM »
The value of gold has a few other drivers that I have not yet seen mentioned, including (1) gold is a very compact, lightweight store of value that can be easily hidden and transported.  There are several practical applications of this including illicit transactions, smuggling value out of currency controlled economies, and fleeing in wartime when  government currencies are worthless.  Ignoring the illegal usefulness, gold does have a real value as insurance in the event of an existential calamity that renders traditional investment and currency inaccessible.  (2) Political... if others want their  currency to compete with or supplant the US dollar as the world's reserve currency, then the challenger needs to convince future consumers of its currency that it is a strong, secure alternative ... one way to do this is increase the amount of gold backing the currency.  This may explain the buying by China and Russia, though given the absence of legal or political systems which are likely to be equitable to foreigners in the event of disputes,  no amount of gold is likely to help.  Another scenario is ... just as gold provides insurance to individuals fleeing wartime when govt currency is useless, gold accumulated by governments may become useful if the world economic system experiences a serious disruption... gold can be used as a medium of exchange to keep things moving.

ebdem

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Re: Why buy gold?
« Reply #77 on: November 04, 2019, 09:35:41 AM »
Maybe you can also find some good answers why and how to buy gold in our interview with Caesar Bryan: https://www.youtube.com/watch?v=WFsk3SXEYA4

stahleyp

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Re: Why buy gold?
« Reply #78 on: November 04, 2019, 09:50:27 AM »
Maybe this interview gives some insight on the question: Why buy gold?
https://www.youtube.com/watch?v=kuiUq_TCRJ0

All for the low, low price price of 1.55% (plus a load!).

He has so much conviction in his strategy that he has less than $500,000 in the fund that he's been managing for 25 years!
Paul