[permaculture] gold and silver

lbsaltzman at aol.com lbsaltzman at aol.com
Sun Jan 14 23:22:36 EST 2007


Let me suggest some caution. It is possible that gold and silver will hold their current high valuations. It is even possible that gold and silver will gain more value.  But despite the current enthusiasm for precious metals, short term swings can occur and if you buy at a high price and something spooks the market you can find the value of your investment drop dramatically, even if in the very long run it does well, the value might not be there when you need it.  Precious metals are extremely volatile.  My experience is that whatever the investment,  most people invest at the top of the market and sell at the bottom.  There are always good stories being told why this time it will be different and you can't lose money but don't believe it.  This is true of stocks, bonds, precious metals and every other kind of investment.
 
It should also be remembered that gold mining is generally devastating to the environment and that buying gold is in a sense supporting that devastation.
 
Also dealers charge fairly substantial premiums on both the buy and sell side of the equation.  So I suggest really research this carefully and go slowly.  Don't panic into buying even if the market keeps rising.  There was an excellent book written several years ago on investment cycles and bubbles. It was called The Devil Take the Hindmost.  The book covers investment manias from the time of the Romans to modern times. 
 
Having said all that holding some gold, particularly when you buy it when the market is down, can be a good thing.  But in total devastation, you can spend it once then it is gone.  Gold can have a role to play in catastrophic times but it is not the long term solution.
 
Larry Saltzman
 
 
-----Original Message-----
From: evansdk at earthlink.net
To: permaculture at lists.ibiblio.org
Sent: Fri, 12 Jan 2007 8:05 AM
Subject: [permaculture] gold and silver


If the economy collapses world wide and paper money isn't worth anything and 
everyone is hungry, what good will it be to have gold and silver? 


Kathy Evans
evansdk at earthlink.net
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