Why gold?

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mbgld

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Why gold?

in response to

Re: SGR Report

NorthLion

posted on Nov 05, 2007 04:43AM

Yes, I know all the historical reasons. But just think for a minute. In our economy what do you do with physical gold? In India they buy/sell it on the street so an underground market is already established. Who buys and sells gold in Canada? CIBC, Royal Bank I believe, and the Canadian Mint; correct me if I am wrong but not a lot of places to sell your bullion. With so few places to sell to, what if they refuse to buy it, or put hefty fees on their buying process. Where does that leave a gold holder. In India it is possible to buy groceries with gold almost directly. Thats one of the reasons that if a husband buys his wife anything under 22 carat gold he sleeps on the couch, less bang for her buck. Very hard to buy groceries with gold in Canada. Yes, historically it has been a safe haven for value, but what if that value cannot be realized?

What if our glorious Prime Minister Von Harper decides that gold is too destabilizing to our currency and economy ( with a little pressure from his buddy Bush) and decides to make it illegal as the USA did this past century? Not too many people would get upset as the general population does not own gold; sort of like income trusts. Harper had not problem cutting off income streams to elderly individuals who relied on income trusts for the sake of government coffers( now they have a surplus and we should feel great about getting our own money back!!!) .

So any thoughts on what us North Americans will do when the price of gold goes up and the institutions in this country prevent us from benefiting from it? Just thinking out loud.