Is buying gold a scam? Consider this...
By ElscottHavoc
@ElscottHavoc (180)
United States
August 6, 2010 11:50am CST
A lot of the time when listening to the radio or watching TV I see these commercials come on pushing for me to buy gold. They insist that I should buy gold from them because it's the only safe commodity, that it's value is on the rise and that the dollar will be worth nothing someday.
But if that's true, then why would a company that truly believes that be trying to sell the gold for money? Imagine if rocks were going to be the only object people would trade and barter with in the future and that money would be non existent, would you try to sell all of your rocks for worthless money?
The answer is no...it's not in the best interest of profiting to try and sell the gold for money, because according to them money will be worthless soon.
Here's what I think...I think people will keep buying gold, and the more that spend money and the higher the demand for it, the higher the value will become. In this way, people will get a false positive, believing they made a smart investment because the value will keep rising. Then suddenly, it will fall out below them! I feel that gold is really only a quick way to turn a profit right now and that there is no long term investment in it, because if there was, the people that owned it wouldn't be trying to get rid of it for something they deemed as worthless.
Also, you are losing an investment from the get go. A lot of times, I here that you should buy gold coins because the government can't take them away like they can bullion. Well here's a thing to consider: You're not just buying gold then, you're buying collectors pieces at a vastly overpriced amount. The value of gold is just a value of it's worth in metal, not what pretty design it has on it. So now what you're buying is truly been marked up by the company that bought the gold, sold the coin, marketed it to you, and finally sold it to you. The gold would have to rise in value far beyond the mark up just to turn a profit.
Food for thought, what's your take?
1 response
@nancy0618 (477)
• Philippines
7 Aug 10
i do not see anything wrong on buying gold, on my case i have my own collection of golds, but only a few, i like gold more than silver actually that is why i collect gold, like bracelets and necklace and other sort of