Richard’s Wisdom -- “Gold, Deflation and Inflation”
From the standpoint of history, there's only one item of value that you don't have to worry about. Stocks can go down the drain, bonds can go bad, houses can lose value, trends in art can change. But gold is immutable. It is changeless money. That's why men and governments hoard it.
A subscriber wrote to me and wanted to know why I "collect" gold coins. "If we have a depression," he wanted to know, "who says that gold will retain its liquidity?" I wrote back that 2,000 years of history say that gold will retain its liquidity. Jews escaped from Nazi Germany with gold bars, Vietnamese exited carrying gold wafers sewed into their shirt seams, California was opened wide in the frenzy to discover gold, Indian women wore their wealth in gold bangle jewelry, the Bible repeatedly mentions gold (note that Christ was betrayed, not with gold, but with silver). Gold is real money, and although the alchemists tried for centuries to turn base metals into gold, none ever succeeded.