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Old 10-16-2010, 11:29   #70
UneasyRider's Avatar
Join Date: Dec 2005
Posts: 4,764
Originally Posted by Big Bird View Post
To what end?
The PM's retain their purchasing power. Let's say that you bought 1 ounce of gold at $300 an ounce and 2 years later you can sell it for $3,000 an ounce. Sounds great right? But what if another 2 years later you can sell it for $30,000 an ounce, even better right?

Now you may say what about the inflation rate during that time, the price of a banana and everything else went way up too. Well that would be the way that it works with inflation. But if you can still buy the same amount of bananas you maintained your purchasing power. If you kept your money in your pocket then your $300 would buy 1% of what the you could have bought if you bought the gold coin. That is a net loss of purchasing power of 99%. Not good.

But wait you might have put that $300 in the bank earning interest, hey it's insured by the FDIC, what interest rate would the bank have to pay you to turn your $300 into $30,000 in 4 years? Where is the bank going to invest their money in order to get the needed return plus profit to do this for you?

I will keep my PM's, you may have a better investment and choose to keep it, I don't.
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