What do gold bugs fear? They fear that everything will crater. That the economy will totally fall apart.
Now… if that really happens… I mean if it REALLY happens… what will that gold be worth… really?
Why would it be?
Who do you know right now that knows how to value an ounce of gold without using the dollar as a benchmark?
If you lived in a Walking Dead like world, what’s more valuable… gold, guns, ammo, or food?
A world where EVERYTHING has gone to pot means there is no more economy… which means there are no more producers and nothing being created. And THAT is the point of having money in the first place… it is stored wealth… it’s a medium of exchange… but when nothing is being produced… then it ain’t really worth much.
Now, don’t get me wrong… it might not be worthless… just worth LESS. Someone MIGHT trade gold with you for something… but think about this… if they have a choice between eating and keeping a shiny piece of metal under their bed… which makes more sense?
The food, right?
You can’t eat gold.
And if the economy really does collapse… as it has in places like Venezuela… what do you need… gold? Or guns to defend yourself?
Gold actually becomes a liability even when there is *some* value in it in that kind of world.
Anyway, none of this is an argument against going back on the gold standard or using gold as money.
I’d LOVE to have that kind of society.
It’s also not an argument against buying gold at all.
But gold is not money.
The dollar is.
So… I say we use it the best we can.
And that is why I recommend people run everything through their life insurance policy…
More info on how to do that when you sign up to my silly, silly, email list on monegenix.com