Monday, September 14, 2009

Gold

One of Doug's brothers thinks it's time to buy precious metals. It makes a lot of sense to me... I've always understood that if the government overspends and then prints money to cover itself, it will cause inflation. I've also understood gold to be a good hedge against inflation.

All of which does seem to suggest that now would be a good time to follow Steve's lead... BUT, if that were really true, would every single conservative talk show have ads pushing gold? If they companies making the ads really believed that a collapse of the dollar was imminent, would they really be giving us their gold in exchange for our dollars? Wouldn't they be holding them, or at least only selling to those who approached them, instead of spending incredible amounts of money on all these commercials?

What I think might be the best hedge against inflation right now is real estate, but that costs more and adds a layer of complication to life that I'm not sure we want now.

I guess our security will have to be in the Lord!

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