Are You A Gold Bug?

I'm not a gold bug, though I generally favor the idea of a gold-backed currency. But Gary North is a gold bug and writes the following:

What is a gold bug? It is a person who believes the following:

1. The gold standard was good for world trade, 1815 to 1914.
2. The gold standard was good for individual liberty.
3. A gold standard reduces the likelihood of monetary inflation.
4. Gold was a good investment, 1976-1979.
5. Gold is still a good investment, despite 1980-2001, when it fell 70% while consumer prices doubled.

His column goes on to discuss the problems of actually enforcing a gold standard. North says there are two possible solutions -- free banking or 100% reserve banking -- and goes on to state that neither has a chance of being implemented in our lifetime.

Comments

[X]

I am a gold bug, and must say that glod is the most secure investment.

When the Bretton-Woods systems was in place, the dollar, being pegged to gold, was more powerful, in my opinion at least.

I agree too that gold is a good investment. In times of international turmoil, such as the long war period in which were are now in, it is safe to buy gold (although this should have been done when it was still at 400 dollars. (US).

[John]

X: I bought Central Fund of Canada, a closed-end fund holding only gold and silver bullion, when gold was US$270 a few years ago. I've since sold it. I have no problem with someone holding a fixed percentage of their investible net worth in gold coins and/or bullion.

I do think people need to educate themselves and understand that gold and gold mining stocks are different vehicles. And within the universe of gold stocks there are important differences. Thanks for reading and commenting.