Buy my gold! US Dollar colllapses soon!1!1!1

[Kelinfort]

No, this isn't another advertisement from gold line. (although, Mr. Beck appears to be quite satisfied with his declining commodity). What is being witnessed in the global economy is a plunge in the price of most commodities and gold is not being left out.

While gold still hovers near $1200 an ounce, this ignores the underlying weakness in the greater commodity market and gold itself. Gold peaked around $1978 an ounce back on August 1st, 2011, during the depths of the first government default battle. Investing in this shiny commodity would result in your personal finances taking a dive.

And yet, with the dollar index topping 91 as of today, the strongest in over seven years, yet more cries come from goldbugs and other hard metal folks about the collapse of the U.S. dollar and the need to invest in gold. Despite lagging behind the entire stock market and other commodities (until last June), many of these "clairvoyants" still promote gold as a solid portfolio choice. While gold certainly could have a spot in any portfolio, the price of gold is quite high and has consistently fallen over the past two years.

So, my main question is two fold: one, why is gold seen as a mythical force of prosperity and ever increasing wealth? The boom days are clearly over, and the shiny effect only goes so far. Too many political commentators and gold standard bearers are hung up on the metal. Two, why is the US dollar "always" headed for collapse? I understand many of these people try to make a quick buck using fear, but at this point, it seems really desperate. Hell, I saw an advertisement today saying collapsing oil prices would kill the dollar due to "peak debt" or some pseudo economic term.

[Empire of Vlissingen]

The dollar is not collapsing it is at it's highest compared to the euro in years.

[Zakuvia]

It's 'headed for collapse' because it means that people will be more willing to diversify in other wealth-retention assets if they feel their current form (dollars) are no longer holding onto their purchasing power. Gold mongers also prey on ignorance of the money-trading market, and have people feel that somehow the same amount of gold bought with dollars won't somehow also be the same amount of gold traded in for Euros or Yen. Gold's also similar to the diamond market where a small number of suppliers rely on a vastly under-utilized, vastly over-abundant resource to artificially inflate the value of a commodity that has no actual value, at least compared to how it's being marketed. This hopefully answers the first one.

As to the second, seeing the dollar as crumbling is important because people with a rudimentary knowledge of the global economy knows that the dollar is the monetary standard that most of the rest of the world uses as a benchmark and stable investment, among other things. If the dollar really were to 'collapse' in the Michael Bay-worthy explosive fiscal apocalypse these people are harping about, then yes, the effects would make investing in something other than dollars appropriate. The fact that they strictly mention gold as opposed to a more stable currency is just them being shills with an agenda. There's also a bit of true dirt-baggery when it comes to these scams. Whenever somebody buys into these gimmicks, they're often given promissory notes that are supposed to equal their share of a reserve of gold. Now, should the digested material hit the oxygen displacement apparatus, who in their right minds is going to do anything but horde a pile of metal they can trick morons into trading for their water/food/relatives of the appropriate gender? That's right. Not a single one.

You see these ad fizzle during market booms because people see right through them when they do even a second's worth of market research. Remember all the big gold ads in the 90's? Yeah, me neither.

[Kubra]

It's not a "portfolio choice", unless a portfolio is a storage device suitable for being buried in remote spot along with several other portfolios of ammunition.

[The Carlisle]

Because shiny things are good.

[The Nuclear Fist]

If the dollar collapses and we're plunged into some sort of apocalypse thst destroys civilization as we know it, what do you think the most sought after commodity for use and trade will be? Food? Nope. Potable water? Ha ha ha. Bullets to stop the rampaging hordes of mutants? No, it will be bits of shiny, yellow metal. Gold will reign supreme for reasons no one can really nail down, just you wait!

*shakes fist*

[Lydenburg]

This only becomes a serious factor when your currency is on the verge of really collapsing, ie inflation rate is measured in the trillions or the government is declaring bankruptcy.

Like Zimbabwe.

[The Nuclear Fist]

This only becomes a serious factor when your currency is on the verge of really collapsing, ie inflation rate is measured in the trillions or the government is declaring bankruptcy.

Like Zimbabwe.

Clearly Zimbabwe needs to buy my gold right now.

[Othelos]

Because shiny things are good.

yes^

[The Conez Imperium]

I still don't understand why gold is considered valuable? It could almost kill you in a post-apocalyptic situation.

US dollar collapses>Everyone buys gold>Suddenly zombies appear. Does gold kill zombies? People should invest in practical stuff instead of shiny stuff. Buy that Ferrari instead of 10 bars of gold, you can kill more zombies with your Ferrari.

[Dracoria]

Because they refuse to acknowledge Nixon as the hero he was by finally divorcing the USD from gold in the first place. And a number of other things he did right that people forget because of the hotel incident. Tying the currency back to gold leaves it even more vulnerable in my humble opinion, than leaving it floating free.

[The Alexanderians]

This is ridiculous the dollar is stronger than it has been in years.

[Hyfling]

The US economy is the strongest it's been in a long time, why would the USD collapse in value so suddenly to the point a new currency is needed?

Also, I never really understood why the people who think society will collapse soon put so much faith in gold, why would it be the only thing left of value? Not the food or water, not the ability to generate electricity, not the weapons or vehicles, not the already established money that we could use should currency be required, but big heavy, easily stealable bricks of useless metal.

In that case you'd be better off getting a generator, some guns and a big stack of bomb shelter food.

[Risottia]

... yet more cries come from goldbugs and other hard metal folks about the collapse of the U.S. dollar and the need to invest in gold. ...

It's called making a "Cicero pro domo sua".

[The Alexanderians]

The US economy is the strongest it's been in a long time, why would the USD collapse in value so suddenly to the point a new currency is needed?

Also, I never really understood why the people who think society will collapse soon put so much faith in gold, why would it be the only thing left of value? Not the food or water, not the ability to generate electricity, not the weapons or vehicles, not the already established money that we could use should currency be required, but big heavy, easily stealable bricks of useless metal.

In that case you'd be better off getting a generator, some guns and a big stack of bomb shelter food.

That's my thought too. When survivalist mentality takes over no one values gold anymore (usually) and they instead focus more on things revolving around survival. Hell cigarettes would be a better choice than gold for their bartering value.

[Dracoria]

The US economy is the strongest it's been in a long time, why would the USD collapse in value so suddenly to the point a new currency is needed?

Also, I never really understood why the people who think society will collapse soon put so much faith in gold, why would it be the only thing left of value? Not the food or water, not the ability to generate electricity, not the weapons or vehicles, not the already established money that we could use should currency be required, but big heavy, easily stealable bricks of useless metal.

In that case you'd be better off getting a generator, some guns and a big stack of bomb shelter food.

That's my thought too. When survivalist mentality takes over no one values gold anymore (usually) and they instead focus more on things revolving around survival. Hell cigarettes would be a better choice than gold for their bartering value.

Ammunition. There's the real currency of the post-apocalyptic future.

Also health packs but they may not really exist as such.

[Pope Joan]

The dollar is not collapsing it is at it's highest compared to the euro in years.

Reports of the demise of the dollar have proven remarkably premature.

For the past 20 years at least.

[Big Jim P]

If owning gold were so critical to surviving, then why the hell are these people selling?

[Shilya]

So, my main question is two fold: one, why is gold seen as a mythical force of prosperity and ever increasing wealth? The boom days are clearly over, and the shiny effect only goes so far. Too many political commentators and gold standard bearers are hung up on the metal.

Ironically, for the same reason the dollar has value: People believe in it, and it's been that way for a long time.

Two, why is the US dollar "always" headed for collapse? I understand many of these people try to make a quick buck using fear, but at this point, it seems really desperate. Hell, I saw an advertisement today saying collapsing oil prices would kill the dollar due to "peak debt" or some pseudo economic term.

You don't catch people by telling them that everything will be okay, and you have a hard time selling long-term security of wealth without first taking out the other sources of long-time security.

[Bts 042]

I still don't understand why gold is considered valuable? It could almost kill you in a post-apocalyptic situation.

US dollar collapses>Everyone buys gold>Suddenly zombies appear. Does gold kill zombies?

No, but when we have the Werewolf Apocalypse, silver will come in handy.

[Maqo]

So, my main question is two fold: one, why is gold seen as a mythical force of prosperity and ever increasing wealth? The boom days are clearly over, and the shiny effect only goes so far. Too many political commentators and gold standard bearers are hung up on the metal.

Ironically, for the same reason the dollar has value: People believe in it, and it's been that way for a long time..

Gold has many qualities which make it useful as a currency, in the absence of fiat currency.
- It is (relatively) scarce
- It doesn't degrade
- It is easily portable
- It is easily and infinitely divisible
- It is difficult to fake/easy to verify

[Romalae]

Gold, just like anything else, is an investment. It's a commodity like coffee or chocolate or copper. The idea that it is anything more than that based on some hyped-up falsities of some scam artists and collapsitarians out there is just absurd. And keep in mind, this is coming from someone who is an avid coin collector and has a few gold coins himself.

Don't allow yourself to be fooled by people trying to make a buck off you by giving in to their elevated rhetoric about precious metals.

[Kelinfort]

This only becomes a serious factor when your currency is on the verge of really collapsing, ie inflation rate is measured in the trillions or the government is declaring bankruptcy.

Like Zimbabwe.

Fair point, but it looks like Zimbabwe is screwed.

[Occupied Deutschland]

If owning gold were so critical to surviving, then why the hell are these people selling?

Getting money to invest in lead?

[Nexus Contact]

I guess the rich think the end of the dollar collapse is done. They are selling.

http://www.businessinsider.com/see-the-rich-are-selling-not-buying-their-gold-2009-6

I truley wonder what the rich are up to this time. What if the dollar really will collapse, but gold will collapse with it? What if the true thing to invest in is grain or something? Then, the rich would be selling gold, buying grain, and waiting for the poor with nothing, and the middle income with gold to make the rich richer?

They are up to something. It is just figuring out what they are up to.