Visualizing The Five Reasons To Own Gold

Tyler Durden's picture


Following last night's 94-page extravaganza on gold, this infographic, part four in our 2014 Gold Series (part 1, part 2, & part 3 here), covers the five best reasons to own gold: 1) Gold helps investors diversify their portfolios; 2) Gold is a great store of value; 3) Gold helps protect against inflation and other risks; 4) Gold demand is driven by a growing east, while grades are dropping and new discoveries are more scarce; and 5) Gold stocks are as cheap as they have ever been, using the GDX as a proxy. The reasons to own gold have not changed since the peak in 2011.


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Wed, 06/25/2014 - 21:19 | 4896118 Groundhog Day
Groundhog Day's picture

I can't wait for 1000 gold price

Wed, 06/25/2014 - 21:27 | 4896144 DirtyWilly
DirtyWilly's picture

Why wouldn't you buy gold?  Everyone knows it goes up in a recession/depression!  It goes up in inflation too!  It's a win-win, always goes up!  And helps support the banks that own most of it, because you know, we'll need them when the dust settles.

Wed, 06/25/2014 - 21:41 | 4896200 SilverIsKing
SilverIsKing's picture

The best reason to own physical gold is the fact that all currency and savings in the world is debt based fiat worthless paper and digital ones and zeros that are growing exponentially without anything fundamental to support the growth.

So if you want to own real money and not a paper promise of a bankrupt counterparty, you should own some gold.

Wed, 06/25/2014 - 22:13 | 4896336 Bindar Dundat
Bindar Dundat's picture

Bitcoin is right up there as well......if we can only overcome the Russians and their 51% attacks.

Wed, 06/25/2014 - 23:20 | 4896557 J S Bach
J S Bach's picture

It's pathetic that it has to spelled out this way for the plebs.


Look... gold is real money, period.  End of discussion.  Now go get some while you still can.

Thu, 06/26/2014 - 00:25 | 4896694 sleigher
sleigher's picture

I want to believe ( I do believe ) I want to be safe tomorrow.  Because tomorrow is when all the bad stuff happens.  At least that is what everyone keeps saying.  The morrow will reveal the marrow.  The marrow of the soul.

Thu, 06/26/2014 - 04:16 | 4896926 MeMadMax
MeMadMax's picture

This is assumeing that society as we know it survives, and you got the money to burn.

If you are an average joe like me, whom is living paycheck to paycheck, spending what little you may have left on gold seems like a fools erand, and will more than likely be buying non-perishable food, guns/ammo, fuel, etc etc...

That is, if ur a smart average joe, if not so smart then ur buying iPhones and the boxed season set of the kardashians while trying to figure out a way to cover next months payment on that shiny honda that got +1 mpg over last years model that you traded in, but was $5,000 dollars cheaper than the new one...



Thu, 06/26/2014 - 06:36 | 4896989 Pegasus Muse
Pegasus Muse's picture

Excellent discussion/analysis:


June 25, 2014 

Iraq About US Dollar, Hyperinflation Trouble in 2015 - Gordon T. Long

Wed, 06/25/2014 - 21:40 | 4896198 Robot Traders Mom
Robot Traders Mom's picture

"I can't wait for 1000 gold price"

I won't be surprised if you get downvoted to eternity with that comment. More people than ever are following swindlers that think they can "chart" or "predict" the price of gold/silver, and thus trying to trade it and profit. If ANYONE ever tries to act like they have a remote clue what will happen in the short-term with gold/silver, RUN. These are not friends to the liberty movement, they are charlatans. They lead people to become discouraged when the price doesn't do what they expect. It is a manipulated market, we all know that. Charts mean absolutely nothing.

We will all be thankful for the days we could buy silver at $20/ounce. Be grateful to the PTB for manipulating it to levels we can afford. If you are pissed off gold isn't at $5,000/oz, you don't get it. It will be there soon enough. Have patience and keep buying. In the meantime, stay away from the crooks that lurk here and the blogs around us...

Wed, 06/25/2014 - 21:54 | 4896253 BLOTTO
BLOTTO's picture

Aside from the obvious good reasons to own gold...i think another consideration is because 'they' own/value it and have owned it right from the beginning. That means something.

Wed, 06/25/2014 - 22:29 | 4896398 Zirpedge
Zirpedge's picture

Oh Lord, the Flintstones fan waded in with an appeal to "they". hahahahhahaha

Wed, 06/25/2014 - 23:26 | 4896579 quasimodo
quasimodo's picture

Wow, that is the comeback of the day, troll. 

11 weeks old? Did you even pop your cherry yet?


Thu, 06/26/2014 - 07:09 | 4897023 GetZeeGold
GetZeeGold's picture



Probably didn't even know he had a cherry.

Wed, 06/25/2014 - 22:35 | 4896418 Zirpedge
Zirpedge's picture

RTM..He likely thinks it's a strong buy at 1000. Your hollering at one of your own.

Wed, 06/25/2014 - 23:14 | 4896546 Greenskeeper_Carl
Greenskeeper_Carl's picture

i agree. my mining stocks have been trading sideways, or losing money, but im ok with it. GDXJ will have its day to shine one day, but Im not in a hurry for it to happen. At under 30, im thrilled to be able to buy physical at these prices. i would smile at 1000 gold, or 15 silver. later in life, at some point in the future, they will be worth multiples of what they are now. plus, if gold is 10k/ounce, how much do you thing a loaf of bread is going to cost, or a gallon of gas? Im not saying i don't think its going to happen eventually, im just saying its not going to be pleasant, regardless of the ammount of gold/silver one may hold

Thu, 06/26/2014 - 05:35 | 4896959 schatzi
schatzi's picture

This... I've been saying it over and over. Be thankful gold is where it is. My average gold portfolio cost 1600$/ounce and I'm glad it's not at 5000. It means I can still buy as income rolls in and I still have a job. It means the financial markets are still in control - which is a good thing. It means we aren't close to armageddon yet. Gold is your insurance for an event YOU DO NOT WANT TO HAPPEN. Fuck the reset. If we can somehow wriggle through without causing total economic collapse, I'll thank our lucky stars.

Thu, 06/26/2014 - 09:29 | 4897326 OceanX
OceanX's picture

As painful as it will be, we need a reset.

For the last 30 years, everywhere I lived:  Detroit Metro, Houston, Austin and now Melbourne, Florida, I have seen strip malls left empty, while a few blocks away, bulldoze and building ... such a flagrant waste of resources.  Your grandchildern are literally going to mine the garbage dump for their natural resources!

Thu, 06/26/2014 - 09:13 | 4897271 TeethVillage88s
TeethVillage88s's picture

Thanks for link:

These two stories seem to have a connection: UN (Detroit & Iraq) (Armored UN Trucks on US Highway)

Wed, 06/25/2014 - 22:54 | 4896453 RaceToTheBottom
RaceToTheBottom's picture

"I can't wait for 1000 gold price"

I don't go too much over 50% of my assets till it reaches 1000....

You the same?

Thu, 06/26/2014 - 04:39 | 4896940 shouldvekilledthem
shouldvekilledthem's picture

50%? Are you nuts?

Thu, 06/26/2014 - 12:14 | 4898149 RaceToTheBottom
RaceToTheBottom's picture

Yeah, I know, I should do more.....

Wed, 06/25/2014 - 23:34 | 4896598 Kirk2NCC1701
Kirk2NCC1701's picture

This is old news, old argument.  Even if 100% true and correct.

Wake me when it hits $1000 (BTFD) or > $2000 (sell bullion).  Until then, it's all "noise" from shills, agents and brokers, looking to make their commission.

p.s. When price keeps falling, you get... gold mining industry consolidation.  Weak miners have to sell.  Big whoop!

Wed, 06/25/2014 - 21:19 | 4896119 deflator
deflator's picture

And it makes a really nice chinking sound when the coins are stacked one on top of another.

Wed, 06/25/2014 - 21:20 | 4896122 kliguy38
kliguy38's picture

Give all the reasons you want ......the peeps won't buy it until its too late

Wed, 06/25/2014 - 21:20 | 4896124 DirkDiggler11
DirkDiggler11's picture

Gold - you had me at my first AGE coin.... Still stackin' ...

Wed, 06/25/2014 - 21:24 | 4896136 Zirpedge
Zirpedge's picture

Thank god for the visual sids, gold bugs can't read.

Wed, 06/25/2014 - 21:31 | 4896159 bigdumbnugly
bigdumbnugly's picture

surprisingly, i got all that except the sids part.

Wed, 06/25/2014 - 21:44 | 4896214 NoDebt
NoDebt's picture

Spelling Immune Deficiency Syndrome?

Thu, 06/26/2014 - 05:37 | 4896963 Help Is Not Coming
Help Is Not Coming's picture

Suddenly Inflating Dollar Syndrome?

Wed, 06/25/2014 - 22:24 | 4896371 Zirpedge
Zirpedge's picture

"Visual Aids" spelling nazi....pathetic.

Wed, 06/25/2014 - 22:31 | 4896408 greatbeard
greatbeard's picture

>> gold bugs can't read.

>> spelling nazi.

Bro, is it that you can dish it out but not take it, or are you a raging hypocrtie, or both?



Thu, 06/26/2014 - 09:39 | 4897381 MsCreant
MsCreant's picture

<--can lamely dish it out but not take it.

<--raging hypocrite

Thu, 06/26/2014 - 09:40 | 4897391 MsCreant
MsCreant's picture


<--one of the lamest most uninspired trolls to ever perform on ZH.

Wed, 06/25/2014 - 21:47 | 4896231 ebworthen
ebworthen's picture

Sure we can; every Dollar says "Federal Reserve Note" - as in promissory note.

I don't trust the government's promises, do you?

Wed, 06/25/2014 - 22:27 | 4896386 Zirpedge
Zirpedge's picture

I don't trust nobody. Especially gold bug freaks who can't see that the shiny metal is a historic tool of oppression.  Your being played chum. I can't imaginge a scenario that I would trade water or food or security for some shiny trinkets.

Wed, 06/25/2014 - 22:33 | 4896413 Squid-puppets a...
Squid-puppets a-go-go's picture

gold is just a tool. sometimes it has been used to oppress. Sometimes to liberate.

At points in history when paper wealth is being forcibly exaggerated, gold liberates.

Get on board, dude. Jump off again once the correction phase has been completed

Wed, 06/25/2014 - 22:41 | 4896444 Zirpedge
Zirpedge's picture

Following this line of reasoning (frankly thank god someone here can stay on topic) what makes you think those who control the supply of paper will give up their strangle hold? Have the fiat creators given any indication that this bust out cycle is close to ending? I see a boom and bust cycle as very rewarding for parasitic  (labor averse) class. Divide and conquer "they" say.

Thu, 06/26/2014 - 05:03 | 4896948 Squid-puppets a...
Squid-puppets a-go-go's picture

i think its important to bear in mind that the 'controllers' you refer to only provide a united front in times of control and stability. When they lose control some turn on others - by competitivity or necessity. Their stranglehold will not be surrendered voluntarily but it may come undone by the same fear and greed they use on the masses

Thu, 06/26/2014 - 06:46 | 4896999 Pegasus Muse
Pegasus Muse's picture



Betting against gold is the same as betting on governments." –Gary North

"Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." -Daniel Webster

Wed, 06/25/2014 - 22:40 | 4896445 oddjob
oddjob's picture

I don't trust nobody.

So you trust everybody, risky plan but I hope that works out for you.

Wed, 06/25/2014 - 22:45 | 4896461 Zirpedge
Zirpedge's picture

Grammar nazi..just a figure of speech. When you come out of your infotainment induced stupor let us know.

Wed, 06/25/2014 - 23:01 | 4896507 oddjob
oddjob's picture

I think you mean figurine of speech.

Thu, 06/26/2014 - 00:55 | 4896729 sleigher
sleigher's picture

It's badass that a common insult today is to tell someone that they are asleep at the wheel.  "When you wake up let us know".  That has to be a good sign, even though you guys were arguing with each other.  

Thu, 06/26/2014 - 05:45 | 4896965 Help Is Not Coming
Help Is Not Coming's picture

I don't think it is "Asleep at the wheel" as much as it is "Controlled Flight Into Terrain". The difference being that with the former one is actually asleep where as with the latter the pilot thinks he is completely aware of the status of his aircraft and remains completely confident and relaxed all the way to the scene of the crash at which point he learns too late that things weren't the way he thought they were.

Wed, 06/25/2014 - 21:26 | 4896142 Rubbish
Rubbish's picture

It makes me just want to grab a wench by the hair and drag her to my cabin..................



Then show her my Treasure :)

Wed, 06/25/2014 - 21:30 | 4896154 flowerguy
flowerguy's picture

The best reason is that the banksters can't print it!

The best they can do is certificates, ETF's and ' storing' it for you.

He who has the gold makes the rules who really has it?
That answer is terrifying

Wed, 06/25/2014 - 21:34 | 4896174 Squid Viscous
Squid Viscous's picture

sold some oz back to gainesville today, sick of this shit,  

Wed, 06/25/2014 - 21:42 | 4896206 greatbeard
greatbeard's picture

>> sold some

Hard to blame anyone for that.  I'm not throwing in the towel just yet.  Although I'm a might bit tired of the steady, and obvious, ass kickin', I see no better place.  Best of luck to you.

Wed, 06/25/2014 - 22:03 | 4896302 Decolat
Decolat's picture

Endure, if only for your kids future. You know whats coming. 

Wed, 06/25/2014 - 22:41 | 4896447 greatbeard
greatbeard's picture

>> for your kids future.

I haven't got any.  Mine is for my present.  I'm not bailing.  I'm following a plan I made a long time ago.  But I don't blame anyone who does.

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