Should I buy gold?

So lately I have been really interested in investing and economics in general. My eyes have shifted towards the stock market where people go who are looking for the best possible gains on their investments, but also risk having their worst loses. I have been learning more in depth what drives the stock market and that leads me to learn about what drives economies and dollars. It is all very interesting stuff to know. I would like to dabble in the market someday.

Like anything, I don't like to just dive in. I want to make sure I know exactly what I am doing (like Warren Buffet :) That is why I am doing a lot of research before I even think about making the leap.

The little I have learned brought my attention to gold. Gold is said to be a hedge when the markets are dropping. Investors buy gold when they foresee troubled waters in the economy. For example: the violent protests in Egypt could drive up the price of gold because investors fear the instability it could cause. Other extremists buy gold because they fear the end times and gold will be the only way they can buy food, water and shelter when the paper dollar has no value. I see gold as being an good option when one thinks the value of the US dollar will go down. I think with all of the spending the US government has done and continues to do it will be very hard for them to keep inflation down. When inflation rises here, it is difficult to keep the US dollar competative with foreign currencies (granted larger economies like China, Brazil, and most of Europe are struggling with inflation as well, and if they are inflating faster than the US the US dollar might stay strong even though the US economy is inflating) I see problems on the horizon with the price of corn, soybeans, and other major commodities so high, the price of gas rising and continuing to rise, it will be difficult for businesses to make money. They will pass on higher costs to the consumer who will not be able to consume as much because they don't have the money to do so with unemployment at about 9% (not including those who stopped looking for jobs). I guess what I am saying is that I think the value of the dollar will decrease a lot in this next year. (Then again, this will probably be true in many other nations as well) If there were an equation to buy gold, this would be it.

I am not blogging to talk about what drives gold. I am thinking about buying gold and I had a peculiar dream last night. I was walking through a meadow near dusk. As I was walking throught the tall grass, I saw 3 wolf cubs. I was frightened because I didn't want to meet their mother or the others in the pack. So I rounded my walk at a brisk pace. Luckily they did not see me and I felt safe. When I felt more safe I realized I was walking near a cornfield to my right. It was slowly getting darker. Then out of nowhere, the wolves came running past me only this time they were not cubs, but they were full grown, adult, hungry wolves. I stopped in fear. They ran past me into the first few rows of corn. Then they stopped and looked back at me and showed their teeth as their mouths salivated. They began walking toward me as I stood in the meadow frozen in fear. They slowly began circling me as I spun in a slow circle trying to defend myself from all angles. Then the first wolf jumped towards me. It tackled me to the ground and I desperately tried to defend myself as the wolf violently tried to kill me. Then I realized in my right hand I was holding a swiss army knife (I gave the groomsmen and ushers in my wedding swiss army knives as a gift). With this knife I stabbed it into the wolf's belly and ripped downward spewing out the internal organs of the wolf. It lay dead before me as I stood up and the other wolves ran off. I was pretty excited that I had just killed a wolf with a swiss army knife and wanted to tell everyone I knew. Then I was suddenly transported to an entirely different scene.

Here I was with a group of 4 other explorers. It must have been cold because we were all wearing large jackets with fur around the brim of the hood and fur gloves, but I did not feel cold. I think we were exploring a sunken wooden ship underwater, probably a pirate ship. I think we were underwater, but everything else was normal like we were on land. The ship was broken in half and the 2 halves were leaning inward like a V shape. Then one of the explorers in my group found a large bar of gold and raised it high into the air with her right hand. We did not know where she found it nor did we bother to see if there was more gold. Then I realized what we were exploring, it was a large circular hole in the middle of the ship. The hole was large and spread across the width of the ship. The explorer who found the gold took the gold and threw it into the hole. I wondered why she had done this so I looked into the hole and was amazed at what I saw. In this hole I saw water and it looked as though there were many levels of the ship that were underwater and the hole went on far beyond what I could see. In the many levels of ships were a mass amount of sharks! Some were large and some were small. There was one shark that was unimaginably massive, I couldn't help feeling like that is the shark we were looking for and many more like it. (This was the only extremely large shark I saw). Then I had this feeling that the woman who had thrown the gold into the hole was either looking to satisfy the hunger of the sharks or was trying to attract the sharks. I could not tell which one was true. Seeing all of these sharks, especially the large one frightened me greatly. I don't remember if the gold had a marking nor how much she threw into the hole. The number 75K does seem familiar though. This could be a weight or a value or a marking, I don't know. I do vaguely remember her throwing in more gold to the sharks as I looked down the hole and I watched the gold slowly sink down the hole as little air bubbles floated to the surface as the gold sank.

This was the end of my dream and I woke up with a strange feeling that this dream was somewhat prophetic. Now, I do not know what it means, but I had an errie feeling about gold.

One Love,
Danger