The attempts to get you to buy gold are off the charts! EVERY "conservative" TV and radio station has a different gold company running the ads, with the hosts claiming "X is the only company I trust". It seems like whenever there is a huge push for something like this, it is all part of a behind-the-scenes plan to rip off the average joe. My feeling is that if the SHTF and the economy collapses, what good will $100,000 in some gold company stock/fund do you? Is anyone else going to buy your $5,000 /oz gold? My theory is that this huge gold push is to drive the price of gold up to a point where the big boys DO sell out, make a killing, and leave everyone else scrambling to get out before it drops below what they bought in for. Please post your thoughts on this. Thank you.
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Yea, I've not been sure what to make of the "gold rush phenomenon" either. Convert cash to gold/silver, they say. OK, but I can't buy groceries for my family with gold bars. I definitely get the concept. But it just seems too big for my brain to wrap around. What about the 90% of people in the workforce? Their employers pay them in dollars. How exactly would that system go away and employees be paid in gold and silver? If a furnace breaks down this winter and a repairman is needed, he probably won't accept gold as payment.
If I bought a silver coin 5 years ago for 10 bucks, today I can trade it for 30 and have more buying power. If i instead saved the 10 dollar bill for 5 years, its still worth only 10 bucks.
This is gold and silver's strongest position - hedging inflation. Many people go into it expecting it to grow wealth when in fact it is best used to preserve it.