No one owns real gold in the United States.
If you go to gold touting sites like Gold Eagle and 321 Gold you can read dozens of articles giving good reasons to own gold. Yet most of these analysts promote paper - not gold. They tell you why paper like Junior Gold stocks, or Gold Tracking ETF's or Gold Futures are the superior gold investments.
In Asia when they want to invest in gold they buy gold. In India when they want to invest in gold they buy gold. In Europe when they want to invest in gold they buy gold.
Meaning real gold: bullion coins and bars.
In America when we want to invest in gold we buy paper. Only in America can it seem reasonable to invest in a paper mirage.
Is it because we Americans are just way more sophisticated than the rest of the world?
Is it because here in the good old US of A we know better than those stupid imploding Europeans and those Medieval Asians?
Or is it because we are culturally mired in an obsession with leverage? Every analyst promoting paper gold claims it will outperform real gold because it is a LEVERAGED PLAY ON GOLD.
LEVERAGE MEANS DEBT.
PAPER IS A PROMISE. PAPER IS AN IOU. PAPER IS A FORM OF DEBT.
Do you really want to hedge yourself against a Debt implosion by using a DEBT SUBSTITUTE FOR REAL GOLD?
How is it that here in the USA we are so addicted to debt? Has debt really been that good to us?
Has Debt really increased the Net worth of the Average American?
Take a look at the sobering chart below that shows the average Italian lives about twice as well as the average American and then think if you really want to buy in to the illusion of paper gold: