There seems to be more and more people out there saying the financial sky is falling. They have lots of good reasons, facts and figures. Some of them go into their pitch to sell gold and silver. The spiel goes on that there is only so much gold and silver and it will hold it;'s value.
So I got to think. You can own a little bit of one thing, gold. Or - You can own a little bit of everything, index funds.
If the economy took went bad for a while, I expect we'd have big inflation for a while and then following that a lot of people would be out of work. So, I'd expect the index funds to go up with the inflation, then crash with the economy, but always hold their relative value in comparison with everything else. They would then rise as the economy got better. It seems like they would be as good as gold.
Is my thinking incomplete?