The value in the dollar is that the IRS requires you to pay it in dollar. Even if the US dollar crashes, you still owe the IRS x amount of dollars. It means that the US dollar will always have some value, it can't go to zero. Bitcoin can actually go to zero.
I must be missing the point in regards to precious metals, particularly gold, as an investment vehicle.
But what if the IRS gets disbanded? Could the US dollar go to zero, too?
Depends when you look at it. As posted above, the highs and lows are about a factor of ten apart. Those can't both be viewed as successful hedges. Even within just the last generation, the low was a sixth the price of the high.
So, time to dig those fillings out and melt them down, sell?
But what if the IRS gets disbanded? Could the US dollar go to zero, too?
I remember reading the same thing about a top quality complete man's suit, over an even longer time scale.
I’ve had over 30% appreciation in value on my platinum holdings in the past 3 years, waiting for the gold/platinum ratio to get close to 1 so I can convert it to gold. My precious metals account manager said under the past trends, it should occur within the next couple of years but, he also said the way gold is behaving, there is a lot of uncertainty when that will occur. He said if I wanted some fast cash, consider selling a bit of platinum. However, he is personally waiting on the ratio to correct. I’m with him.
Not quite, more to the story than I can go in to here. I have been quite satisfied with their advice.
Good for you! I hope it keeps working out to your financial benefit!
Yeah, I'm very sympathetic to the rationality of buying and holding, rather than churning and letting to gov take a bite periodically. It's just so dang high right now!
Yes it does.
Well, the purchasing power of the dollar has lost what, 97% cent its inception? The odds of bitcoin going to zero seem remarkably low considering not just the adoption so far but the likely rate of adoption in the future. When you have clowns like BlackRock and the far more respectable Fidelity deep in bitcoin, you can quickly ascertain the direction it is going. I would add that all fiat currencies have had a limited life expectancy. Considering our rate of spending and debasement addiction, zero or virtually zero in real purchasing power seems quite possible. Buying gold rarely seems like a bad idea over most given periods of time. With bitcoin, I don't recommend it unless you can buy it with funds that you are quite certain you will not need for at least 4 years. The 4 year mark needs to be burned in your brain if you buy. If you do happen to need the money within any 4 year cycle--and things do happen---you can be caught in a brutal situation.
FWIW: In 2000 gold was worth nearly half what it was in 1932. Today it is in its biggest bubble ever.
I’m pretty sure owning gold in the USA was against the law in 1932 (and was until the 1970’s?).
Brass and lead are not precious metals and that comment is gross.
That graph is adjusted for inflation. So it's a value graph, not a dollar graph.
Correct. Convertibility ended with Nixon, out of economic necessity---on account of historically stupid spending decisions which continue to this day. Its absurd to me that some will still argue to buy US treasuries.
onlygold.com
learn.apmex.com
Preparation and self-protection, even if out of vogue, tends to provide peace of mind.
Are you implying that only retail can cause a bubble?
To some degree, yes. So, what happens to the current price when people have confidence in the economy again?
