So far outside the box you can't even see the box from here.
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Wednesday, October 22, 2014
The problem of gold
Lots of folks out there are promoting gold as a store of wealth. They have some good points. Gold is independent from any particular financial system. It's held value for thousands of years. Gold is durable, transportable, and relatively compact. Over the years various countries have been on the gold standard and many think the United State's problems stem from when they abandoned the system. That's a very short overview. Many books have been written about the subject.
Most gold is not used up. Some is lost in industrial uses, but even much of that is eventually recovered. Some of the same gold has been bouncing around the world in various forms for thousands of years.
Personally, I'm not a fan of gold. I'm not judging those who are, but I just can't get into it. For me, gold has a huge moral problem.
Gold makes people crazy. The pursuit of gold has driven men to do horrific things: robbery, murder, slave mines, genocide, war -a long list of evils. The way I see it, holding gold buys into a horribly exploitive system. Creating demand for the metal encourages those abusive systems that extract and collect it.
So how does one store wealth? Darned if I know. All my money goes into having experiences. I collect things like books that have little monetary value yet provide me with pleasure. I've a house and a bit of land, but that can be taxed, or repossessed so it's not a perfect store of value. Frankly, the pursuit of wealth has always bored me.
I'm the first to admit that I'm the last person to talk to about monetary wealth. My bias against gold may just be a personal failing. After all, most people who collect gold have never done any of the bad things associated with it. They didn't invent the system, they are only trying to get by in it.
In the interest of full disclosure, I do have a gold wedding band. That's the extent of my gold. It's value is not in the few dollars it could fetch on the market, but as a symbol of a wonderful marriage.
I live in an area of NH known as the Great North Woods. I'm in my dome-i-cile out in the county with my lovely wife and a varying number of family and friends
-part red neck, part hippie but all country. Experimenting and enjoying the adventure of life.