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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 - 03:24 | 4896906 Capitalist
Capitalist's picture

Too bad most businesses will never accept it as payment. But yeah keep calling it "real money".

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.

Wed, 06/25/2014 - 23:50 | 4896635 Decolat
Decolat's picture

Then you should spend every last ounce to help make your present as fulfilling and legendary and dangerous and uncivil and experienced as possible. You can't take it with you.

Wed, 06/25/2014 - 23:23 | 4896570 rubiconsolutions
rubiconsolutions's picture

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

Been buying from Gainesville Coins for years. Great prices and customer service. I'll probably have yours next week. Thank you!

Wed, 06/25/2014 - 21:41 | 4896204 AUD
AUD's picture

There is only one reason to have gold. It is the highest quality. Nothing comes close, except the noble metals & maybe diamonds.

Wed, 06/25/2014 - 21:45 | 4896220 logicalman
logicalman's picture

Not diamonds.

Wed, 06/25/2014 - 21:48 | 4896230 AUD
AUD's picture

Diamonds are very valuable, always have been.

Wed, 06/25/2014 - 21:49 | 4896234 ebworthen
ebworthen's picture

Diamonds are forever.

Wed, 06/25/2014 - 21:51 | 4896247 WmMcK
WmMcK's picture

Diamonds are a girl's best friend.

A dog is a man's best friend.

Wed, 06/25/2014 - 21:56 | 4896273 logicalman
logicalman's picture

The price of diamonds is kept artificially high by a cartel.

Do a little research.

Wed, 06/25/2014 - 22:35 | 4896416 Squid-puppets a...
Squid-puppets a-go-go's picture

and they can now be manufactured. Thus detracting from the 'rarity' element of value

let me know when they can manufacture gold. real gold.

Wed, 06/25/2014 - 23:56 | 4896653 dvfco
dvfco's picture

And, the Russians have stockpiles of literally billions, if not trillions of carats of diamonds in storage and much more readily mined.

Get your future bridge a modest diamond, but never, ever call it an investment.  If you get divorced, you can bet your ass she's keeping it.  If she dies, you probably won't care.  If she says no, you'll be lucky to get back 25 cent on the dollar spent.

Thu, 06/26/2014 - 00:14 | 4896682 AUD
AUD's picture

Why would she keep it if diamonds are not valuable? Why would you want it back anyway?

Thu, 06/26/2014 - 05:50 | 4896969 Help Is Not Coming
Help Is Not Coming's picture

Diamonds are composed of carbon which is one of the most common elements found on earth.

Wed, 06/25/2014 - 21:59 | 4896284 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

I prefer a wet pussy to a dog, but hey that's just me.

Wed, 06/25/2014 - 23:07 | 4896525 bilbert
bilbert's picture

And EXTREMELY scarce, it seems - DeBeers sees to that!

Wed, 06/25/2014 - 23:55 | 4896651 DoChenRollingBearing
DoChenRollingBearing's picture



+ 1

Extremely good article.  Matches our experience selling a diamond once.  We only got 30% of retail value.

Thu, 06/26/2014 - 00:12 | 4896679 AUD
AUD's picture

That's assuming you didn't get ripped in the first place.

A high carat diamond is a precious thing. If diamonds are not generally considered 'money', it's because not every diamond is alike, so as valuable as any other, unlike your standard gold coin.

Thu, 06/26/2014 - 07:15 | 4897026 GetZeeGold
GetZeeGold's picture



There's a reason they call it a diamond cartel.


If you want to be stupid with your money just invest in rhodium.

Wed, 06/25/2014 - 21:45 | 4896215 ebworthen
ebworthen's picture

Five reasons:  B-A-N-K-S

Wed, 06/25/2014 - 21:45 | 4896223 Reaper
Reaper's picture

Gold is a hedge. We know stupidity always ends badly.

Wed, 06/25/2014 - 21:52 | 4896254 Cabreado
Cabreado's picture

While the graphics were shiny and creative...

"the five best reasons to own gold"...

conspicuous in its absence... the currency is broken, corrupted and controlled.

So then, this article is for fun and entertainment, yes?


Wed, 06/25/2014 - 21:59 | 4896279 logicalman
logicalman's picture

Yep, nicely done graphics, but not a lot of useful info.

Definitely done by someon who knows their way around Illustrator.

Nice use of type too.


Wed, 06/25/2014 - 21:54 | 4896265 homiegot
homiegot's picture

So, I shouldn't be buying now according to this Infographic. I should wait until after the market crash.

Wed, 06/25/2014 - 21:59 | 4896282 Tinky
Tinky's picture


Reason number six:

“The modern mind dislikes gold because it blurts out unpleasant truths”  

 Joseph Schumpeter

Thu, 06/26/2014 - 04:17 | 4896927 shouldvekilledthem
shouldvekilledthem's picture

The modern mind dislikes gold because it's not efficient to transfer and validate.

I don't think it's smart to own more than 5% of wealth in PMs.

Thu, 06/26/2014 - 05:07 | 4896951 RadioactiveRant
RadioactiveRant's picture

I tend to think an arbitrary 10% PM is where to be in normal times, but the current situation is far from it. I'm about 30-40% in gold, I'd like it to be less but I can't see anywhere else to put my money. Everything from equities, real estate, to gov bonds look expensive; the moneys just there chasing the yield. At this point I'm just hoping to preserve capital.

Wed, 06/25/2014 - 22:00 | 4896290 alexcojones
alexcojones's picture

Best reason to own PMs?

ALL the people we detest try to convince us NOT to own gold.

Myself? I can afford a bit of silver and light beer.

Wed, 06/25/2014 - 22:09 | 4896307 lasvegaspersona
lasvegaspersona's picture

While the ideas behind freegold are largely not understood there is another reason to own gold and it is the one I think will be the one that matters.

At current gold prices gold does not move. It is so severely underpriced that almost all physical is immediately sucked up from the mines. Recycling has stopped. Large quantities of gold simply cannot be had. Gold in its physical form has ceased to be a useful part of the monetary system. If you are small you can get some. APMEX has about 22,000 ounces on hand. That sounds great. You or I could spend all we want there and leave without making a dent in their inventory. A billinaire wanting to store wealth could not spend 5% of their wealth there. A country would not waste it's time.

For gold to function as a wealth asset it simply must be priced higher, much higher. At fofoa we speculate how this might happen. Just remember this, if gold were at a much higher price then all current holders of gold would be much better off. Central banks hold gold. The ECB holds 10,800 tons. The USG says they have 8133 tons. China may have 6 to 8,000 tons.

When things get really bad one action a CB could take would be to buy gold (physical) in the marketplace. The Saudis (it was probably them) ran the price up 10 fold in the late 70s. This time everyone knows what would happen in a physical only market. One of the CBs could just promise to buy all that was offered. They would exchange currency and would wind up with gold. Gold would be seen to be valuable. It would move freely at this new higher price. It would once again become an important wealth asset. No more buying Rembrandts or cases of wine. The most fungible, widely accepted, loved and respected asset would be functional again. Trust could return to the system.


Reason #6    A Reset.

Wed, 06/25/2014 - 23:51 | 4896640 RaceToTheBottom
RaceToTheBottom's picture

Or the country that bought up all the gold (china) could just do exactly what the US has done since, since, well 1917....

Truthfully I have no real knowledge of the freegold thingie....

Wed, 06/25/2014 - 22:08 | 4896321 Nimby
Nimby's picture

Lead, bitchez!

Wed, 06/25/2014 - 22:15 | 4896343 lasvegaspersona
lasvegaspersona's picture

GD $1000 gold could happen. Gold is priced in the derivatives market. If something happens in that space...who knows. In a physical only market gold will cost 1000 per ounce when coffee is 5 cents a cup and a nice house is $2,000.

Wed, 06/25/2014 - 22:16 | 4896344 swmnguy
swmnguy's picture

I'm not sure I care how gold (and silver) is priced in US Dollars.  I like to have it because since Roman times, a nice suit and a good pair of shoes (nothing fabulous mind you, just good and serviceable) has cost about 1 oz. of gold.  Since people have been buying gasoline, 5 gallons of gas has cost about 1 oz. of silver.  I don't buy this stuff to day-trade, or thinking I'll live like a king when everybody else is resorting to cannibalism.

Wed, 06/25/2014 - 23:32 | 4896590 The Most Intere...
The Most Interesting Frog in the World's picture

No if you owned a gun you would have a lot better chance of living like a king.

Thu, 06/26/2014 - 00:09 | 4896672 Bemused Observer
Bemused Observer's picture

Me neither. It is the continuity. The ability to move between different economies. Historically that has been the norm.

A lot of people I think get stuck in the "What's it worth in dollars?" mindset. But to me, you are stashing it for when dollars lose their value, so why would you worry about that? What's it worth in cowrie shells? Or zucchini? Who fucking CARES?

You want to be able to USE it. And you can reliably exchange it for whatever the currency-du jour happens to be, so it gives you more potential liquidity in a variety of scenarios.

I can walk in to a gold dealer in Bangkok, Sydney, London, Bonn, or Bumfuck, Missouri. And I can present my gold, and they will give me whatever it is they use for money. Do I care about what the exact exchange rate is in dead dollars? Or is it of more importance that I can exchange it for what they are using? If no one takes dollars, who cares how many of them I have?

Wed, 06/25/2014 - 22:25 | 4896370 lasvegaspersona
lasvegaspersona's picture

The 'limiting downside' slide is just wrong. 10% of gold is NOT industrial. New sputtering techniques have drastically reduced the need for the limited use of gold in industry. Almost all 'jewelry' gold sales are really investment sales. Sure gold bands are sold here in the USA without regard to gold quantity. In China no gold sale happens without the calculation of 'just how many grams am I buying'...ditto Indian I've been informed. Almost all gold is bought as an investment. Gold's only real function is store of value. That is why gold is valuable. 

In fact THAT is the exact reason gold functions so well. If I hoard gold no one suffers. If I and many others hoard silver, industry suffers. Central banks know this, they have chosen the one and

Wed, 06/25/2014 - 22:26 | 4896384 Crazy Or Not
Crazy Or Not's picture

Go ZH ! pump that market yeah baby pump it pump it !!! (sarc)

Ever get the feeling you're being played?

Wed, 06/25/2014 - 22:39 | 4896437 greatbeard
greatbeard's picture

>> Ever get the feeling you're being played?

Certainly a prudent person would have to consider that angle.  OTOH, the bashers are much more persistent and powerful than the pumpers.  It would seem, if we are being played, it is the bashers doing it.

Wed, 06/25/2014 - 23:06 | 4896524 Bemused Observer
Bemused Observer's picture

Another gold article! Yay!

Sorry, I'm a recent convert, and like many I tend to have that 'new convert enthusiasm'. Yes, I'm the one grasping your hand earnestly and asking you if you've been saved...

But gold just makes so much sense when you pull back and look at the big picture. At this point in my life, all I ask is to keep what little shit I HAVE. I'm not trying to make a killing in the market, or 'lock in' profits. I just don't want my shit to disappear while I'm holding it.

The dollars I have in my pocket are being devalued all the time. If I stash a roll for 10 years, what will I be able to buy with them then? Well, what happened to my purchasing power over the PAST 10 years? If the currency itself fails (common historical occurrence) what do I do with it...find a collector?
I can sell gold today for the cash du jour, and be able to go and participate in today's economy. In 10 years, if the dollar dies and we get some new medium of exchange, I will be able to sell my gold for whatever it is they're using then. Gold will have a value in just about any currency. That value will fluctuate in the short-term, especially in unstable times, but it will NEVER be zero. Over the longer term, the value will always revert to the "Good suit and a meal" norm, so if I have enough, I can ride out the big swells and troughs. I will always have some kind of liquidity that can't be stolen, not entirely. Thousands of years of human history says so.

Wed, 06/25/2014 - 23:20 | 4896561 Slim
Slim's picture

Just understand that "faith" can be misplaced in the short-medium term.  Note the 20 year period from the early 1980s to the early 2000s.  Gold did nothing but go down in the face of steady but moderate inflation year-after-year and multiple recessions, geopolitical/economic crisis periods, etc...It went down >60% in nominal terms and was so much worse in real/inlfation adjusted it's not even remotely humorous.  Gold is long-term.  Timing is nearly impossible.  It is a store of value with a VERY uncertain conversion rate at any one particular time - but a store of value nonetheless as there is always demand just uncertain pricing as with anything.

I'm not saying don't buy but merely that people should understand what they are buying and not have irrational expectations which just as with the CNBC talking heads are fed by those who already own gold and want to pump the price for their own gains despite what they may tell you.

As with all things, price matters, is often hard to determine, and balance tends to be the key as outsized one sided bets produce far more losers than home run hitters no matter the bet.  I wish I could tell you the perfect asset to preserve capital on an inflation adjusted after-tax basis but there's nothing certain in life.  Deep breath, prudent choices, live life as it's the most prescious and sadly limited/uncertain commodity you have.

Wed, 06/25/2014 - 23:34 | 4896597 Bemused Observer
Bemused Observer's picture

" It is a store of value with a VERY uncertain conversion rate at any one particular time - but a store of value nonetheless as there is always demand just uncertain pricing as with anything."

And that is the metric I value it by...the continuity. I have a long-term outlook. I'm not concerned with the context of how it fits into economies, just that it apparently DOES. And it segues between economies very easily as well.

I'll leave the agonizing over the "values" at any one time to those who enjoy such things. They are the type who have emotional reactions to the ticker on the bottom of the screen on CNBC.

Wed, 06/25/2014 - 23:16 | 4896552 Downtoolong
Downtoolong's picture

Reason six: Because Banksters are still fighting each other to control gold, and if anyone knows how worthless alternative paper money is it's those fuckers.

Wed, 06/25/2014 - 23:19 | 4896558 The Most Intere...
The Most Interesting Frog in the World's picture

I have always said, give me the choice of gun or gold and I will select gun. With one I can get the other any time I want.

As there is no gold in US vaults, the powers that be must concur.

Wed, 06/25/2014 - 23:53 | 4896643 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Gold is simply "wealth insurance".  Keep your premium payments up to date and you will retain your purchasing power while those holding "virtual assets" get clobbered.  In the height of the Weimer Republic hyperinflation 25 ounces of Gold could buy you an entire city block of downtown Berlin.  Research this term and save you and your family a lot of future tumult "bail in".



Wed, 06/25/2014 - 23:43 | 4896624 DavyRoySixPack
DavyRoySixPack's picture

Gold is anti-beltway ....


Wed, 06/25/2014 - 23:47 | 4896629 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

Silver bitchez!

Wed, 06/25/2014 - 23:47 | 4896632 Manipuflation
Manipuflation's picture

Those reasons are parts of the same single reason to own gold.  Gold is the ulitmate
Fuck You Fed package we offer here at ZH.

Thu, 06/26/2014 - 00:57 | 4896730 BarnacleBill
BarnacleBill's picture

InNovember 2012 I wrote a very brief (600 words or so) layman's guide on the subject of how to buy gold. It wasn't a sophisticated piece, and was written for my local audience here in Cayman Islands, where I am a former Manager of the Chamber of Commerce. Not many people write about the "how to buy it" aspects of gold. I don't recall ever reading one on ZH. Did I miss one?


Thu, 06/26/2014 - 01:51 | 4896794 Blythes Master
Blythes Master's picture

I miss big black dick................rum.

Thu, 06/26/2014 - 02:21 | 4896832 Joebloinvestor
Joebloinvestor's picture

They forgot the mushroom cloud picture.

You need gold to make a fission based nuke.

Thu, 06/26/2014 - 03:42 | 4896910 Jano
Jano's picture

Yes, but tungsteen-carbide, or pure tungsteen can also do the same job.

Thu, 06/26/2014 - 04:42 | 4896941 shouldvekilledthem
shouldvekilledthem's picture

Bitcoin for the WIN. :)

Thu, 06/26/2014 - 04:58 | 4896947 airborne 71
airborne 71's picture

Everybody here seems to have forgot history .  During the last depression then President Roosevelt OUTLAWED the ownership of GOLD !! He had every bank vault and safety deposit box of every citizen opened and the gold was confiscated !!  Do you not think that the current occupant of the white house will do the same ?  Of course he will . Gold will be outlawed for private ownership.  and at the same time he will take all of the cash stored in those safe deposit boxes as well .  Good luck finding a safe place to keep it handy.

Thu, 06/26/2014 - 05:35 | 4896962 RadioactiveRant
RadioactiveRant's picture

So, as with any valuable good, keep where you keep it to yourself.

Thu, 06/26/2014 - 12:17 | 4898159 FinalEvent
FinalEvent's picture

I'll try to burry it on an island. But the boat I bought is old and rusty. It might sink on the way. But hey, rather on the bottom of a lake than inside a bank 


Thu, 06/26/2014 - 06:57 | 4897011 zerocash
zerocash's picture

When gold was $300 per ounce in the late '90s could you have bought a tailor made suit with accessories for that amount of money back then?

Thu, 06/26/2014 - 08:34 | 4897153 LMLP
LMLP's picture

Has the squid said to sell yet? I hope so....

Thu, 06/26/2014 - 09:42 | 4897401 wrs1
wrs1's picture

Yet here we are a new day dawns and $1320 is far more effective than either the Berlin Wall or the Maginot Line.  No going around this wall.  Gold gets there and folds up like a cheap lawn chair.  Option expiration is tomorrow and there are no puts down to $1250 so it looks clear for those calls above $1250 to be wiped out with minimal damage to any higher put sellers.  Beware a huge collapse in gold tomorrow or today.

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