“Market observers believe Tehran has been one of the biggest buyers of bullion over the past decade after China, Russia and India, and is among the 20 largest holders of gold reserves… with an alleged 300 tons, big enough to challenge the UK at 310 tons, and more than Spain!”
Now why would Iran want a barbarous relic like gold when they could buy Apple stock, which is sure to go up up up forever?
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My only complaint with Dave Ramsey is that he actively encourages his listeners to sell all their gold and silver, and denounces them as “not being investments” and this being a bad time to buy because the price keeps going up.
I don’t understand how he can hold that position, but maybe his advertiser pays really well.
The fear is that gold prices will suddenly drop resulting in a huge loss.
I think the argument is that gold isn’t an investment, it’s protection against inflation.
Naturally, any investment can suddenly drop resulting in a huge loss.
Right now history says that we’re in exactly the environment – high deficits, war spending, money printing – in which currency devalues and gold appreciates.
When those conditions change my investments will change. For now I trust precious metals more than I trust cash, stocks and bonds.
Any pullback in gold will be short lived. Here is a compelling argument for silver to make a short term run to $40 by the end of March. Would certainly hurt the shorts. I can here the screams from JPM already.
http://goldandsilverlinings.com/?p=301