Friday, November 06, 2009

Gold has never dropped to zero

I keep seeing these commercials for gold that emphasize that the value of gold has never dropped to zero. That is apparently supposed to inspire my confidence in gold.

I can't help thinking that even if the engine of my old car seized up, the car died in front of an on coming train, and that train smashed the car almost beyond recognition--the value of the car would still not drop to zero because some things would be undamaged and could be sold for parts (door handles? gas or break peddles, a hub cap or gear shift? etc.).

I have no idea whether gold is a good investment, but the assertion that the value of gold has never dropped to zero inspires my skepticism, not confidence.


Gerardo Moochie said...

I was thinking that very thought myself. That phrase does not inspire confidence. It's a waste of 5 seconds of adverstising time. Even the value of Hasan's actions at Fort Hood have not dropped to zero. He is revered by Muslims all over the world.

Dennis said...

I checked out your "Mussings" blog and liked your post on the Fort Hood shooters' PowerPoint so much, I added a link to what I posted on those PowerPonts earlier today.


Kevin said...

This reminds me of the old Native American ads... Wampum has never dropped to zero!

Gold has very little practical value. If you're interested in hedging your bets against the apocalypse buy practical things like food, guns, and lots of ammo.