2 of 3

Write now Article Tools

Being a former commodity broker I can tell you that trading dollars for gold is not the best thing you can do. Take for example the people that bought gold back in the mid eighties. Many of them paid eight hundred to nine hundred dollars per ounce. They have earned no interest on the gold. It has just recently gotten back to the seven hundred dollar level. If you are concerned about the fluctuations in the value of the dollar how are you going to handle the fluctuations in the price of gold.

As for the foreign investors that deep buying bonds issued by the United States, don't you think that they are even more concerned about the ability of their own countries to pay on their debt? Why else would they keep buying ours? What about foreign governments that buy our bonds? If they thought it would be better to be in gold, then wouldn't they be buying it instead?

Gold only carries the value of what people place upon it. You can't eat it. If it really came down to it you would gladly trade it for guns and bullets to defend you food stores and family if the dollar ever went to zero! That is what the state of the world would be.

You would be hard pressed to find many governments today that back their currency with gold . The dollar is so common that there are other countries that recognize the dollar as legal tender within their borders.

If I had as little confidence in our country to survive an economic downturn , as some in the country have, I think I would move. 911 was supposed to destroy our economic structure. We are still here and doing fine

Learn more about this author, Michael Baumgardner.
Click here to send this author comments or questions.

Add your voice

Know something about Trading dollars for gold bullion?
We want to hear your view. Write now!