Saturday, February 20, 2010

Gold, Plain and Simple

Currency analysis in 30 seconds.  

I just received the book "Gold - the once and future money"

Governments that are not restricted in their monetary supply, such as by being linked to gold, or tribbles, or whatever, will print money to keep their constituents happy, and keep themselves in a job and a position of power.

The ruled, "the people" will vote for people who are willing to give them what they want.

In the long run, this doesn't work.  Wealth (and the hard work that brought it) are destroyed.  

Gold is currency, not a commodity.

If you had say 80% of your wealth in Gold, and the rest in a trading and FX account, you might feel pretty smart.   If you held the gold in an offshore account, you might feel even smarter.

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Insightful and Useful Comment!