World's ultra-wealthy go for gold amid stimulus bonanza

The great point about gold is that you can't just print it. Paper "money" on the other hand, just rolls off the presses.

Gold and silver resist stupidity...

 Paper "money" on the other hand, just rolls off the presses.

If you bought gold, what did you use to acquire it? Paper money? Gold dealers are more than happy to take your paper money from you for taking their gold off their hands.

This tells you all you need to know about our current kleptocratic oligarchs. As millions face death and desperation taxes that need to be allocated to relieve suffering are an "investment bonanza". Never let a crisis go to waste is their mantra.

If you bought gold, what did you use to acquire it? Paper money? Gold dealers are more than happy to take your paper money from you for taking their gold off their hands.

Your point being what exactly? That if gold was really valuable, people would pay gold to buy gold? Doesn't make much sense, does it?

@commanteer

They could swap in securities, other precious metals, property, etc. Gold dealers' make money by earning an asset they tell their customers is a bad investment. If you can't see the contradiction and irony in that, then there is no more I can tell you.

The ultra wealthy don’t invest in gold because they are stupid. The ultra wealthy invest in gold because they’re smart!!

People never been told the history of money... Gold Was and is the only money in existence. Money as you know it it's debt only... You all will wake up very soon to this..

Gold has been a proven in the past to be a great holder of wealth, a diversification of shares by sector and country has been too

They could swap in securities, other precious metals, property, etc. Gold dealers' make money by earning an asset they tell their customers is a bad investment.  If you can't see the contradiction and irony in that, then there is no more I can tell you.

No. The whole point is to buy some insurance against an unstable, debt-based fiat currency. By your definition, any investment at all is a bad idea, as it means giving up cash. Of course, gold dealers take currency - that's what people use in day to day transactions. Maybe good to have around when there are widespread fire-sales of real estate and businesses as well.

You are implying that gold dealers take the cash and stuff it under their mattress, when most likely they use it to pay expenses and buy more gold. There is no irony or contradiction in that.

Every wealthy person I know has been buying gold, and according to this article it is common among the ultra-wealthy. Are you smarter about money than the ultra-wealthy?

On the side note, there is an ongoing trend of Japanese flood of Yen converting into the USD. There are people crazy enough buying into the USD more than Gold. Still, we are observing how the Covid economic depression is driving the Japanese elites to offshore their wealth in the US. My prediction of the day where "Japanese elites will take their money and run" seems to slowly manifest into the reality. The biggest winners from all of these are the foreign investors, especially the American ones who received the contracts from Japanese elites and purchased the Japanese assets for dirt cheap.

https://www.bloomberg.com/news/articles/2020-06-18/there-s-a-flood-of-japanese-money-rushing-into-dollar-assets

Every legendary investor in the world never EVER bets against the US. In the ongoing case of Japan, they are right. Aside Gold, the Federal Reserve is just as magnificent and powerful.

The ultra wealthy don’t invest in gold because they are stupid. The ultra wealthy invest in gold because they’re smart!!

I do not believe any asset is safe, whether real estate or gold or equity or USD. Any asset, that is performing and creating value, is considered safe. No asset is eternal.

The elites simply diversify their assets, not becoming libertarian gold nuts.

2 things:

1) the customers aren't receiving the gold, just an electronic receipt of ownership. If banking system hacked, then the electronic receipts go bye-bye - ie, the customer holds no physical gold. Make sure you buy physical bullion that gets delivered, but copper bullion is more easily used since bread would not cost golds (then again, see point 2).

2) gold is not something that merchants readily accept as payment. Good luck getting that converted should their worst fears come to fruition. Cant eat gold or really actually use, except for expensive wiring or dental fillings.

Xeno man:

Actual real estate ownership (as opposed to REITs or other marketing strategies) are relatively safe, but could be lost due to insurrection, govt expropriation, and property taxes which could not be paid if investors worst fears came into fruition (economic collapse).

If every family owned a hectare of land, people could just grow their own food and barter with neighbours (rice for lettuce, carrots for milk, etc).

Gold dealers are more than happy to take your paper money from you for taking their gold off their hands.

Gold dealers are in the business of making markets in gold, e.g buying from someone and selling to someone else, so that’s not demonstrating anything that you supposed it was demonstrating.

One can buy and sell gold futures on an exchange rather than through a dealer, cutting out the middle man.

Read the article again. The gold price is up. Supply and demand...

if you have some gold and want to have some yen for it instead let me know!

If every family owned a hectare of land, people could just grow their own food and barter with neighbours (rice for lettuce, carrots for milk, etc).

This is the keyword. Not all lands are equal.

Owning a house in the urban area, while the nation has collapsed, may yield no capital nor real value. The land may not be able to farm at all. Again, it is also based on the global situation.

It reminds me of the Fall of Saigon. Tons of rich Chinese and Vietnamese quickly took all their belongings to flee with their American masters during the Operation Frequent Wind. All of them thought that the NVA will conduct a Stalinist economic reform on the South where all private properties are confiscated and rich elites will be punished. They were wrong! The NVA later granted all of those lands, assets and properties left behind by the fled Southerners to the Northern Vietnamese and pro-NVA Vietnamese Southerners. These people became filthy rich, and today they invested in the production and financial sectors to become richer. The rich people, who fled to the West, became bitter against Vietnam as the result. The Chinese ones simply forgot and moved on, but the ethnic Vietnamese do not forget.

The historical lesson here lies in the fact that one should not absolutely confirm an asset having an eternal value. An asset may be useless today, can be valuable tomorrow. Information symmetry is also important as one can make economic decisions ahead of time. If those poor Southern Vietnamese knew two key lessons, they should not be miserable today.

Information + Asset + Valuable actions/decisions = Wealth

Oh yes, Nothing comes even close. For centuries Gold is always the investors heaven.

Yes it has it's ups & down but will always come out on top.