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Gold was used as a currency before in history, but now it has lost that status in modern economy. Its not suitable as currency for modern economy. Gold based currency system leads to frequent severe financial panic through bank runs. Now gold\'s perceived value is based on blind faith on its historic status. Gold will be OK as long as enough people still holds that belief, there will be a market among themselves even though there is not any practical meaning. To join the gold crowd or to leave them alone is a personal choice. Gold in itself is nothing other than it is rare. Your success on gold is depended on other people\'s views on gold, which is very hard to predict, especially in a tough trying times since it has not been really tested by a major crisis yet after the disconnection between gold and US dollar. Or we can say it is going through the test right now.
I will leave gold alone. |
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