Quote:
|
Originally Posted by Cynthetiq
Don't you have to convert the gold into a fiat currency at some point in time? You can't just take a coin 1 ounce gold and just use that to pay for your groceries and or medical bills.
|
Yes you would, unless the confidence in the dollar got so low that people started using the barter system again or accepting gold and silver coins outright.
If I bought an ounce five years ago at $350, I could sell it for well below spot of $920 today and still be better off compared to savings accounts or banking systems.
On another note, buying real government issued gold coins from pre-1933 have advantges over bullion. They basically have three different values, 1. the face value 2. the gold melt value and 3. a collector value. Even if gold goes down, there were so only so many gold coins minted in that time so they maintain a collector value as well.