Why Gold?

[chinmusic]

The following link is to an article on a site I have followed for a number of years. The author is founder of the site and the primary reason I took an interest in PMs years ago.

At times I feel stupid reading his stuff. This article is particularly good because of the unequivocal reasoning he uses to support his long running thesis that gold is a form of insurance against the mismanagement of the worlds economies by central banks.

I hope people find this helpful.

http://www.itulip.com/forums/content.php?r=142-Before-the-FIRE-Gold-Update-Is-1-237-the-new-720-Eric-Janszen

[DualCarbon]

Thanks, interesting site and article

[chinmusic]

After posting I had done the very thing that drives me nuts...not posting a snippet or preview of the linked article. Sorry for that.....

"Gold is insurance that protects wealth against errant central banking policy orthodoxy and debt-inflation government economic policy that are the hallmarks of the FIRE Economy. The rising gold price represents an increase in the FIRE insurance premium. In 2001 when we bought gold at $270 per ounce as wealth insurance against FIRE, it was cheap. Yet 99 out of 100 investors were then afraid to buy it. At the rate we’re going, in two or three years most investors will be afraid not to own it, and the FIRE insurance premium will far higher than the four times greater price of $1,220 per ounce that new buyers must pay today."

For those who have never visited this site before, when the author refers to 'the FIRE economy" he is referring to the Financial, Insurance and the Real Estate sectors of the US economy. He feels these sectors have been linked throughout this government created bubble and feed off of each other.

[gunDriller]

i like this part,

"The gold price rose every year for the past nine. This year is no exception as one sovereign debt crisis after another ratchets public debt commitments higher and higher. Investors from all walks of life in ever-greater numbers seek to protect themselves against the next FIRE Economy crash and the subsequent reflation.

Did that sound like a cheesy late night TV ad for gold? Regrettably, our foreign, fiscal, energy, and monetary polices are a cheesy late night TV ad for gold."

NO KIDDING ! ! !