LogFAQs > #914936966

the reason actual investors buy GLD/SLV/etc is a belief that they are a hedge against economic downturns that hurt the value of stock equities they also hold. the fear of a downturn is logical and understandable, and even wise during periods of peak greed.

as peak greed gives way to peak fear, being able to liquidate those investments and shift back into riskier assets is a benefit.

physical gold makes zero sense for such an investor. it is highly inefficient, and illiquid. it only serves the interests of the kind of person who believes that the next problem will be a government collapse.

such people might have a point in venezuela, though if they have any real assets they would be better served spending them to move elsewhere and invest in local equity markets. in the united states, such people are known as "conspiracy theorists."

they are the primary target of gold sellers, who pander to their fears in order to rid themselves of gold assets at high prices that they themselves bought up at very low cost from a similar bunch during the last time those conspiracy theories proved untrue.

it is a cycle of shysters fucking gullable fools.
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And when the hourglass has run out, eternity asks you about only one thing: whether you have lived in despair or not.