Gold Deposit Acct

[bakuten]

Gold has always been money....is still money....and will re-assert itself as the preferred form of money in the near future.
ppl who think of it as just another commodity will be bitten badly in the future.

Swiss are having a referendum come November on whether to back their Swiss Franc with Gold.
yes....we are moving away from fiat....back into real money.
Be prepared.

 

[coldmilk]

Assuming that you have already decided to invest in Gold, the next question is whether to invest in paper or physical gold.

If one of your main reason for investing in gold is to minimise counter-party risk (think Lehman Brothers etc), then having paper gold does not give you much assurance. Physical gold remove much if not all the counter-party risk which no one thought much about before the financial crisis.

Another big concern about paper gold is that the paper gold market is many times (tens if not hundreds times) bigger than the physical gold. So if you own paper gold, you do not actually own any gold but rather a promise to deliver gold or some value-in-kind. In time when demand for gold skyrocket, you may find that taking possession of your gold is virtually impossible (not to mention that the party that you have a contract with, may not exist anymore given that they have bet against gold).

Yes physical gold has some disadvantages but I believe its advantages outweigh its disadvantages. To each his own.

 

[henrylbh]

If TS listen to me, he would gain now.
Cause the gold has gone up.

Did you gain in the recent sell down and now up?

 

[bakuten]

Just go read up on how MFGlobal screwed its customers over. You will understand why holding the physical thing is so inportant.

 

[Bedokian]

Gold has always been money....is still money....and will re-assert itself as the preferred form of money in the near future.
ppl who think of it as just another commodity will be bitten badly in the future.

Swiss are having a referendum come November on whether to back their Swiss Franc with Gold.
yes....we are moving away from fiat....back into real money.
Be prepared.

I was reading about this Swiss Gold Initiative referendum over the holiday yesterday about the vote to bring some gold back to Switzerland and the partial (not full) backing of the currency to gold. So does that mean we can consider the Swiss Francs as another asset class, much like what it was before it got floated?

 

[henrylbh]

If TS listen to me, he would gain now.
Cause the gold has gone up.

The boat has returned for you. Or you waiting for a ship?