Published: 8:19 AM, Apr 15, 2022
The thing about buying gold is that it doesn't do anything, it doesn't have an army of productive staff willing to produce or serve. It doesn't grow in mass, adding atoms overnight and thus increasing in value.
And miners around the world are pulling this out of the ground day and night, so the total volume in circulation grows nonstop. Its value is also somewhat linked to human desire rather than serving some dire humanitarian purpose.
I cannot eat it, breath it, live on it, and beyond a range of science and electrical type uses that will never demand its total exploitation, it is, all in all, pretty useless.
For all the above reasons I have never liked gold as an investment, I know why it is there as one, but there have always been better places to put my money. Places that proactively try to accumulate wealth.
But here is the rub, it cannot be printed, and mining is a lot more difficult that printing.
The US have printed their dollar into a inflationary death spiral, the stimulus of 2020 was somewhat contained and necessary, nobody was at work, things were bad and we know money supply and liquidity at these times are important, looking back we can see there was no inflationary effect. $3 trillion got printed and they kind of got away with it.
Then along comes Biden in March 2021 with his bold idea to print £2 trillion and hand out $1,400 checks to nearly everyone, start paying extra to unemployed.
Boom, CPI instantly goes from 2.62 to 4.16. and it has been shooting up for a year now and will go over 10%. Giving people more money to spend while paying people to not find work to produce on such a grand scale will only cause one thing, massive inflation.
That one Biden bill will be looked at and reviewed again and again in the future as one of the biggest acts of economic destruction a country could try.
So, looking at my smallish cash reserves I decided to get some physical gold, any cash that I accumulate in the near future will also be converted into gold. It may not do a lot but it’s not being printed into destruction.