Comments on: The Case For Gold & The Case Against Gold http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/ Some thoughts on VC, some on tech, and some on other stuff. Sat, 11 Feb 2012 01:50:00 +0000 hourly 1 http://wordpress.com/ By: Thomas Rosen http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-3145 Tue, 04 Jan 2011 23:02:29 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-3145 I think the expert who describes the gold trade best is Victor Sperandeo. He is the creator of the Diversified Trend Index, and a former portfolio Manager of the Quantum Fund…a brainchild fund creation of Jim Rogers. According to Sperandeo, on the Upside Buy Gold Physically in case of hyperinflation, and on the Downside, Play Volatility in the Futures Market. There is a Great Interview on CNBC Fast Money talking about Gold.

]]> By: Robert http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-2724 Wed, 22 Sep 2010 00:15:09 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-2724 The Case For

The fastest rising economy on the planet (China) is encouraging its citizens to buy gold and the central government is as well. In addition, India, as well as smaller countries like Thailand, use gold as a form of informal trading.

China and India – the two most populous countries, are long on gold.

]]> By: Tim http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-2714 Tue, 31 Aug 2010 01:51:20 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-2714 “Gold has no intrinsic value”. I’d like to know where you got that from. That could not be more incorrect.

Gold has many properties that lend it intrinsic value. It is the one substance that has for the longest time in history been regarded by people as something of value, intrinsically — enough so to be used as a medium of exchange. It best serves the requirements for the medium of exchange, precisely because of its intrinsic value.

There are good arguments against the assertion that there is not enough gold, so we need paper. Sorry, I don’t have links, but if you look you can find.

]]> By: KY http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1377 Tue, 15 Dec 2009 20:30:37 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1377 Another three cases against gold:

1. the world governments collectively abandoned the gold reserve system since the 70′s and replaced it by fiat currency systems. Until the fiat money system fully runs its course and Armageddon comes, gold will be regarded primarily as a commodity. It will trade higher during mid-cycle crises like this one we are currently in but it will be largely forgotten by public in between the crises. Younger generations will only read about the gold standards in the history textbooks.

2. the world’s gold market is about 5-6 trillion USD even at today’s valuation. This is tiny comparing to the monetary basis of the world we live in today. Just by looking at this ratio, there is no practical way to replace the fiat money system by some sort of gold standard in the near future. Gold will continue to be a temporary vault to store value; but hardly anything more than that.

3. in the next 25-50 years, most developing countries need substantial growth to feed and cloth their younger and more ambitious generation. And the aging population in the developed world also needs such growth in the developing world to subsidies their retirement. The world demographics trends will drive for aggressive monetization in the name of growth. Gold certainly lacks a lot of key characters to serve such as a major currency in such a world.

]]> By: JoeyKnish http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1350 Tue, 01 Dec 2009 15:35:59 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1350 You can also argue that gold is a proxy for fear/uncertainty. When the price of gold skyrocketed in the 70s, there was massive uncertainty. Arguments that gold has no intrinsic value is foolish, people like the yellow metal because its shiny and signifies wealth.

]]> By: larrycheng http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1333 Mon, 23 Nov 2009 20:04:27 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1333 Ben, now that’s one perspective I hadn’t considered.

]]> By: Ben Arend http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1332 Mon, 23 Nov 2009 17:46:10 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1332 One might argue that paper money has more “intrinsic” value in apocalyptic times since you could burn it to keep warm or cook something whereas gold would be completely useless. Interesting perspective!

]]> By: larrycheng http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1323 Fri, 20 Nov 2009 03:16:13 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1323 Rob, I decided to put no intrinsic value under “for” and “against”. I think the main argument against that you’re talking about is that since gold doesn’t generate yield, there’s no intrinsic value from a DCF perspective? Or do you mean it in another way? A lot of people say that fiat currencies have no intrinsic value because you can just kill a tree and run the bark through a printing press and there you go – more money. Interesting that you hear the same point on both sides.

]]> By: Rob Go http://larrycheng.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1322 Thu, 19 Nov 2009 19:32:42 +0000 http://larrycheng.wordpress.com/2009/11/19/the-case-for-gold-the-case-against-gold/#comment-1322 The main argument against gold: No intrinsic value.

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