The bright side of investing in gold is that it has stored value. It is a great investment for this reason. However, if someone dealing the gold were to run out of money due to management practices, striking fear into the hearts of people who have gold, it’s not right for gold to lose value because of their mistake. They should get a bailout just like the banks. That would protect the value and investments of American people.
This is more than likely just an added precaution, but in that case without insurance the best thing would be to relax. Gold could still be bought and sold for a profit, with buyers and sellers doing it for the same reasons. There’s no reason why that gold should be valueless in the long term or with all buyers. In the run on the banks, people were left with nothing. In this case, you would still have all of the gold.. This is different than the run on the banks, where they were left with nothing in hand... all of their money was in the bank.
At the end of the day, anything can lose value simply because people refuse to accept it for value. If everyone stopped using the dollar it would become valueless. It isn’t fair for this to destroy the financial well being of people who are trying to invest to have stored value.
To protect yourself, I would diversify investments to lots of things that store value. I don’t think it will be an issue with gold, but I don’t think it would hurt to FDIC insure gold investments in the near future.
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