Gold down 1.6 percent on U.S. healthcare ruling, Europe | Reuters

Gold down 1.6 percent on U.S. healthcare ruling, Europe | Reuters.

Gold is viewed as a safe haven, but why? Gold prices have become more correlated with the rest of the financial markets since the financial crisis began in 2008. Doesn’t this fact eliminate it as a safe haven. Gold is also virtually useless except for jewelry.

We have a cultural memory of the Great Depression when the government took our ancestors’ gold in exchange for paper money. To this day, it leads some people to believe that gold is somehow superior to paper.

I bet that the price of gold will drop like a stone during the next financial panic. Then, people will forget about gold as an investment for a good twenty or thirty years, and I will be able to start adding to my coin collection again at reasonable prices.

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