Mo’ Money is worth less
Remember, I do this to entertain me, not you.
Uncle Pays the Bills
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September 17th, 2012 at 11:28 am
Yep. Precious Metals are not an “investment” any more than car insurance is.
If you don’t get in a car wreck, you don’t get any “payoff” for having your car insurance.
PM’s are currency insurance. If the currency doesn’t crash, no “payoff”.
Of course, the folks driving the “currency car” are likkered up, swerving all over the road, and heading for a fiscal cliff…
September 17th, 2012 at 12:29 pm
Uncle, thanks for the link! My sitemeter hasn’t been this active in ages!
HL, with car insurance I am of the opinion that we are betting against ourselves. The insurance company is betting we won’t have an accident – we are betting we will. And if we don’t they get the payout via our premiums.
With precious metals even if the local currency doesn’t crash you can always sell your PM’s because they usually retain their value – unlike last year’s insurance policy.
September 17th, 2012 at 2:07 pm
That is a valid point. I would counter with the notion that even if you don’t crash, you still get the benefit from car insurance of being compliant with motor vehicle law, and perhaps some discount at Pizza Hut or Budget Rent-a-car.
But in either case, the big payoff doesn’t come til a mishap occurs.
September 17th, 2012 at 3:12 pm
ah, but there’s seldom a “big payoff” because of a little rule call “depreciation”. it’s a device whereby the insurance company can keep more of your money even if you have the big crash. also, only a sucker buys a new car because of the 10 to 20% depreciation when one drives off the lot. because of this one almost never recoups enough after an accident to replace the car they were driving.
September 17th, 2012 at 7:00 pm
I never knock the other fellow’s merchandise. The Automobile Club is fine. He’d have to join the club and pay a membership fee to start with. I can do just as well for you, and that’s a honey of an anklet you’re wearing there, Mrs. Dietrichson.
That tears it.
September 17th, 2012 at 7:51 pm
Check out the average spot price of gold in 2001. I don’t remember cars costing 1/5 of today’s price.
September 17th, 2012 at 8:38 pm
>Check out the average spot price of gold in 2001. I don’t remember cars costing 1/5 of today’s price.
No fair adding a third data point! That’s like injecting logic or something.
Part of the price of gold is how much it’s worth. Part is how much people think it’s going to be worth tomorrow. And part of the price of gold is the emotional tug that happens when Ben and the Fed keep using the only tools they have in their toolboxes – and somehow expecting different results this time.
(remind me again – how many dips so far this recession?)
So no, it’s not quite as simple as the total amount of reserve gold divided by total amount of Helicopter Ben’s monopoly money, but QE3 is certainly a factor.