Thursday, July 14, 2016

Gold Is Money &
It's An Insurance Policy
"One of the reasons that China is stockpiling thousands of tonnes of gold - They know the U.S. is going to inflate their way out of their debt. China can’t dump the Treasury Notes they own because the market is not that deep. So if you can’t sell them and you know the U.S. is going to inflate their way out of it then what can you do? You can buy gold as a hedge. You can hope for a stable dollar, in which case the gold won’t do very much. But if you know the U.S. is going to destroy the value of the dollar then the gold will go up. You’ll lose on the paper side but you’ll make it up on the gold side. Gold is money and it’s insurance. It’s like an insurance policy but you don’t have to make yearly payments. An actual insurance policy is only as good as the company that writes it. AIG went bankrupt. With gold there is no insurance company — keep it in safe storage (not a bank) and you’re holding the gold."
- Jim Rickards*
LINK HERE to the article

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