The dangers of investing in precious metals??

[greenelephant]

OK, butwhat does everyone think of foreign governments buying huge reserves of PM's (China, India, and Russia). India for example buying a bulk purchase recently for approx $20 billion. I totally agree PM's have no long-term future ahead whatsoever, but with all these aquisitions the Asian countries are buying to safeguard themselves against the $US dollar. DO you think there may be a short term trend in PM's in the near future?

I realise I may be fussing over minor issues and not seeing the big picture, but I just want to rule out any doubt

thanks

[sjkted]

Originally Posted by greenelephant

OK, butwhat does everyone think of foreign governments buying huge reserves of PM's (China, India, and Russia). India for example buying a bulk purchase recently for approx $20 billion. I totally agree PM's have no long-term future ahead whatsoever, but with all these aquisitions the Asian countries are buying to safeguard themselves against the $US dollar. DO you think there may be a short term trend in PM's in the near future?

I realise I may be fussing over minor issues and not seeing the big picture, but I just want to rule out any doubt

thanks

The point is that gold and silver are currency, while paper is based on a fiat (fake) system of credit. Credit comes from the Latin word credere which means to believe. So, once the world stops believing in our paper system, it will literally become worthless.

The economy will not go away. It will step down a few notches. People will still have things to build and sell and people with skills will still be able to sell their services. What we are looking at here is a currency collapse. I'm not going to go on and on about how PM are the greatest thing in the world, but the point is that they do hold value, they can be easily carried around, subdivided and changed. Will this be as efficient as dollar bills, ATM cards and credit cards? No. But, the point is that it is a way to preserve the value of your earnings when the dollar has no value.

Gold and silver have been used in the past and they will be used again. Unlike other forms of property such as cars and houses/land, you own gold. If you believe you own your house or your car, just stop paying your property taxes or your car registration and see how long you can hold onto either of them.

--sjkted