Wednesday, February 18, 2009

Gold and the coming depression

Apparently people are rushing to buy gold again, a sure sign of bad times and worse to come. Throughout the ages gold have been a guarantee for long time investments because the value of gold doesn’t moves that much and even more importantly, gold can be used to make rings, tiaras, coins or something else to further increase its value. This is also the reason why we once in our history had all our currencies bound to gold; the gold standard. From the early 19th century until the First World War was the best time in human history if you look at the increase in people’s living standards and salaries and during that time we had the gold standard, being a insurance that governments and central banks couldn’t print as much money as they wanted, hence kept the inflation down. Sadly this gradually changed eventually leading up to the great depression and the abandonment of the gold standard. Since then governments have had no problems fiddling with the books or using the money making machines to put more and more fictive money in the system.

But still, gold remains as a favorite investment. It’s beautiful, have always hold great value to people and can be molded as well as used for different things. And when people start buying and putting their savings in gold, that’s the real sign for all the rest of us to be on the lookout for the next depression. Did you think that the financial crisis had peaked? You sad sad little human… The fun is just about to start.

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