Saturday, May 15, 2010

If the world is ending, should we hoard gold?

Let's say the Mayan prophecy is true and December 2012 is the end of the world as we know it.
Should we hoard gold and silver since the dollar will not mean anything? But if its the end of the world, who are we hoarding the gold for?

And this hoarding mentality is what pushes the demand, but can you all remember that supply is limited of this metal? Unless we find it on another planet, we do not have much! Hence the recycling - an old gold chain is sold to a gold buyer, which is sold to refiners, which melt it and cast it into solid bullion, which is then sold to manufacturers, who create many jewelry pieces out of it, which they sell to the wholesalers, who then sell it to the retail stores, who will sell it to you. How green and awesome is this!!