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Yakk · 03-02-2004, 08:22 AM

Gold seems to act like a non-national currency. Unlike most currencies, no goverment can arbitrarally manipulate the prices of gold: they have to actually do something that takes effort, they can't just tweak a number on a computer and send the currency into a tailspin.

So, in a way, investing in gold is like investing in currencies.

Currencies don't do anything, they are just facillitators. While you can make money off their fluctuations, they aren't actually creating value in and of themselves.

Basically, you make money on currencies by taking money from people who have to use currencies to do their business, or by taking money from other people who are trying to make money on currencies.

Nobody has to use gold to buy/sell goods (like you need USD to buy/sell american goods) other than jewelers and the occasional electronics manufacturer/chemist. Which means most of your profit will come from people who are seeking to make money buy buying gold, and fail.

This isn't true of stocks/bonds/etc: stocks and bonds represent resources used to create value (ie, more resources).

You can make alot of money off buying and selling comic books, but in reality you are doing little better than playing roulette on a crooked table.

All of the above is simply my opinion.

03-02-2004, 08:22 AM	#6 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	Gold seems to act like a non-national currency. Unlike most currencies, no goverment can arbitrarally manipulate the prices of gold: they have to actually do something that takes effort, they can't just tweak a number on a computer and send the currency into a tailspin. So, in a way, investing in gold is like investing in currencies. Currencies don't do anything, they are just facillitators. While you can make money off their fluctuations, they aren't actually creating value in and of themselves. Basically, you make money on currencies by taking money from people who have to use currencies to do their business, or by taking money from other people who are trying to make money on currencies. Nobody has to use gold to buy/sell goods (like you need USD to buy/sell american goods) other than jewelers and the occasional electronics manufacturer/chemist. Which means most of your profit will come from people who are seeking to make money buy buying gold, and fail. This isn't true of stocks/bonds/etc: stocks and bonds represent resources used to create value (ie, more resources). You can make alot of money off buying and selling comic books, but in reality you are doing little better than playing roulette on a crooked table. All of the above is simply my opinion. __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.