The remainder of this editorial by Jason Hommel can be found at: http://www.gold-eagle.com/editorials...mel080104.htmlWhich should you buy, and why? Which will prove to be the better investment in the long term? Let's compare and contrast.
Why is gold useful, and why is it particularly useful as money? Gold is valuable & portable because it's rare & not easily counterfeited. Gold is fungible & exchangeable because every bit of .999 fine gold is similar enough to be like another. Gold does not rust as it's imperishable. These properties make gold a good store of value, a medium of exchange, and a unit of account. Therefore, gold is easily tradable with a narrow spread, meaning it has a small price between the bid and ask-the prices to buy and sell. Gold is therefore the ultimate liquid asset, a luxury, and is why gold is money.
I left the opening paragraph or so, but if you wish to read it in full, follow the link. I deleted the remainder in accordance with copyright & Fair Use policy. This editorial is Copyright 1997-2005 vronsky and westerman.