Thursday, October 22, 2009

Gold is Money..just ask Terry Herbert
see www.dailyreckoning.com.au

Ultimately, Gold is money...it's a way to store wealth over the long term.

Just ask Terry Herbert. The man spent his time with a metal detector, looking for treasure in England's green and golden fields. He'd been looking for years, but when he finally found something important it "brought tears to my eyes," he says.

What Mr. Herbert found was perhaps the greatest discovery of buried treasure in English history - 1,500 different artifacts of gold and silver...dagger hilts, crosses, helmet cheek pieces and other items of war booty from the Anglo-Saxon period, about 1,400 years ago.

Had Mr. Herbert stumbled upon some IOUs from a Saxon chieftain, it would have been a remarkable discovery. Its historical value might have been inestimable. But what he found weighed in at 11 pounds of gold. In addition to the value to museums and historians, it has monetary value. Even if you melted it down, erasing all trace of its history and provenance, it would still be worth about $160,000 at today's price - probably about as much as it was when the Saxons stole it.

Gold's "price has been remarkably similar for centuries at a time," wrote Roy W. Jastram in his 1977 book, The Golden Constant. "Its purchasing power in the middle of the twentieth century was very nearly the same as in the midst of the seventeenth century."

Gold outlives paper money, empires, governments...all of us and all our institutions.

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