I have been asked so many times about owning gold. Many people feel that gold is safe and a place to keep their money free from invasion of foreign entities or our government. To me, this is absolute nonsense. Try and think on a larger scale, what happens when you buy gold? You now own a commodity that does absolutely no one any good; you can’t eat it, it does nothing to sustain your life or the lives of others. The only value to you might be when you sell it, and your funds go back into the mainstream of our economy.
Buying gold is pure and simple hoarding.
Everyone has their spin, but for me, gold holdings damage America and the World.
Here is why: When you buy gold what happens? It sits in a safe place, and you wait for something to happen, no other residual benefit comes from it.
When you buy a bond, what happens? The funds from the bond create commerce, jobs, growth, interaction, and reuse of funds. The same is true for buying stocks, or putting money into a bank or buying an annuity. The winner is all of us because MONEY Moves.
Warren Buffett: • On why he doesn’t invest in gold: “You could take all the gold that’s ever been mined, and it would fill a cube 68 feet in each direction. For what that’s worth at current gold prices, you could buy all—not some—of the farmland in the U.S. Plus, you could buy 16 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?”
Remember, investing is about the results, which are usually calculated as gains or losses, but the real benefit is the flow of the money into many entities associated with the stock or bond, the benefit is realized many times over as it is used many times.
There is now a big movement by some financial advisors to buy gold in your IRA account. To me this is a dead asset. If owning gold is so important to you, buy gold stocks. Gold mining companies, hire employees, run a business and pay taxes. At least you would be contributing to commerce and our overall economy.
Money In Motion is what makes our economy work.
Money hidden away in a pile of gold is not money in motion, that is just hoarding