Comment by mapontosevenths
1 day ago
No, im not arguing that it should be illegal. Im just saying, as Warren Buffet before me did, that its not an investment.
It relies on the greater fool theory to produce excess returns. It is bad for the economy when money idles in non productive speculative assets.
The money didn't disappear, it just changed hands.
You are forgetting the opportunity cost. The gold does not generate wealth it just stores value, like a mattress stuffed with bills. It has become a dead, stagnant, and unproductive thing and by doing that it has removed value from the overall economy that was previously there.
How? The money that was used to buy it is now in the hands of somebody else that can invest it. Nothing was lost. It just changed hands.
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