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Sunday 7 November 2010

Golded Age

Buying gold bullion sounds like it is a thing from the past, but it's back in fashion and it's all thanks to the bankers. The recession hit the markets and made people worried about investing their money in companies that might find their credit flow suddenly halted. If the bank stops lending to a business that business could find its cash flow hit, and it goes out of business. If that happens the shares drop in value to nothing. Nothing, just because of the flow of credit. How brittle the modern way of investing really is.

But gold is solid and dependable. No matter what happens in the banks a bar of gold will still be a bar of gold and that way the money invested in it is safe from the whim of the bankers. That seems like a good deal these days.

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