Why Gold? It's useless!! 4

[Unotec]

Didn't know where to start this useless rant but here it goes (and probably explains why I'm an engineer and not a financial guy).

We, engineers, build stuff, value things that are useful and don't mind paying a little extra for something that will outperform cheaper things.

Now, with this financial crisis all I read is BUY GOLD, actual gold coins!! (yes, the buy, put in a chest and bury in your backyard type)

If gold is useless, well, has some very limited applications, why is it that is still considered so valuable?

If you think of it, stuff like diamonds or gems in general.... They are, in a practical useful way, WORTHLESS!! The most expensive things in life are typically the most useless!

What will happen if the economy tumbles further enough that people start now looking for things they actually need instead of treasuring something they can’t eat, drink or easily build with?

Gold is practically useless as far as my limited knowledge goes, but it will apparently hold its value.

Could the root of the financial troubles be that they are based on a thing as useless as gold?

Aztecs used to value corn as a currency, Romans salt, etc...


<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>

 

[cranky108]

Of all the money that is in curlation, just how much of it is electronic?

My pay check is electronic. My taxes are paided electronicly. I pay my bills electronicly. Where is the need for paper money? Why do they need to print more money than is being worn out?

At least with gold you don't have to worry about identy theft, but dosen't solve counterfitting.

 

[evelrod]

Sorry if this has been mentioned, I skimmed this thread and probably missed a bunch---

When I retired I devoted my time to commodities trading, options, uncovered calls, etc. Mostly gold. In fact, primarily gold.

A little background...When gold 'took off' in the 80's or so, most of my cohorts bought gold, Krugerrand and such. Gold topped at <$800 then...I was too poor to get "on the band wagon" as it were...Damn good thing, too. The bottom fell out of gold in the 90's.

So...Trading options in gold, for me at least, was a good idea in 1998. Priced in the $200/oz range, gold futures were a very good buy and selling out in '07 at <$800 was even better. I did not get greedy, made a little profit and I pretty happy about it. My mates are just now able to sell their "gold" for ~$800, even though the "market" is substantially higher.

Food for thought!

Rod