Folks, I’ve watched this video from CNBC yesterday three times now explaining when or if a credit default swap “credit event” has occurred or how it may occur. The folks at CNBC gave it the name Default 101. Watch it and you will probably feel your eyeballs roll backwards.
That is the problem today. All of this slicing and dicing, and the world cannot determine the difference between an asset and a liability. Do you need a quick lesson on why gold is money and IS NOT a liability?
Aristotle once said why markets have always chosen gold as a store of value and medium of exchange and why they have ignored other items:
1. Physical gold is durable. That’s why we don’t use wheat.
2. Physical gold is divisible. That’s why we don’t use diamonds.
3. Physical gold is convenient in that it is portable and very valuable. That’s why we don’t use lead.
4. Physical gold is consistent. That’s why we don’t use real estate.
5. Physical gold is value in and of itself. That’s why we don’t use paper.
Enough said. Don’t let things get too complicated! Buy gold coins at Lear Capital!