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Gold has no yield (more like negative yield, due to carrying cost)... but also has no counterparty risk. Gold is an interesting option when real yields suck, bu
by jkhdigital 6y ago
Gold has no yield (more like negative yield, due to carrying cost)... but also has no counterparty risk. Gold is an interesting option when real yields suck, but the real purpose is to preserve some semblance of wealth when the sovereign becomes insolvent.
- tylerhou 6y agoThe counterparty risk is that when the sovereign becomes insolvent, people won’t want to buy your gold because they’d rather have food and water.
- vijayr02 6y agoI think the risk when the sovereign goes insolvent is a bunch of people with guns turn up and take your gold away. Sometimes the insolvent state and the people with the guns may even be the same.