her209
No Lifer
- Oct 11, 2000
- 56,336
- 11
- 0
Hindsight is 20/20.btw I feel kind of silly for not jumping on the chance to have got 10k worth of gold for 6k back when it was around 550 an ounce. didn't think much about gold going up then oh well.
Hindsight is 20/20.btw I feel kind of silly for not jumping on the chance to have got 10k worth of gold for 6k back when it was around 550 an ounce. didn't think much about gold going up then oh well.
That's because they were trying to back the dollar with gold but still using a fractional reserve banking system. They were "printing gold," the US increased the money supply by 60%. To put it simply the gov't and banks were running the same scheme with money that the banks are doing today with gold and silver. What happened? Well, first the Roaring 20's. But then when the market beat their scheme, what happened? Massive loss of dollar value. Massive deflation. Great Depression. The Fed didn't re-inflate. That's what people say caused the GD, but they ignore the initial inflation beforehand. People who say a gold standard won't work are correct, but mainly because the banks and governments will still want to (unnaturally) expand the money supply. Again, Phokus, you can't see the forest from the trees.
What inflation? There was a deflation in the early 20s (recession) and then moderate to zero inflation till the great depression.
http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx?dsInflation_currentPage=7
What happens when population / gdp growth outpaces gold supply growth under your "true" gold standard?
??? because its worth 70 bucks and not 1 cent?
well that's one very big IF!If the economy recovers, the inflation effect will be greater than historical norm because of the enormous money pumped by the Fed. It will be interesting to see how they unwind it if the economy recovers.
What inflation? There was a deflation in the early 20s (recession) and then moderate to zero inflation till the great depression.
http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx?dsInflation_currentPage=7
What happens when population / gdp growth outpaces gold supply growth under your "true" gold standard?
so the gold coins i bought in 2002 for $450 bucks that are now worth 1400 bucks each was a bad investment?
does not compute.
couple of things, first you are 100% correct about the housing market but that is as far as it goes.
gold prices is the same for everybody world wide. I pay the same price per ounce as a Saudi prince or a Chinese businessman. its a world price on a world market.
you cant get a loan from a bank to buy gold.
the housing bubble is an american thing and you can not compare the bullshit policies that the government, banks and predatory lenders did to the housing market to the gold market.
Phokus, throughout history fiat currency has never survived. So how can a fiat currency be better than gold, which like this man has said, has been a currency for 3k+ years? Your argument just isn't there. I think buying mass amounts of gold as an investment in an "oh shit" scenario is silly, but owning gold is by no means a dumb idea.
That's because they were trying to back the dollar with gold but still using a fractional reserve banking system. They were "printing gold," the US increased the money supply by 60%. To put it simply the gov't and banks were running the same scheme with money that the banks are doing today with gold and silver. What happened? Well, first the Roaring 20's. But then when the market beat their scheme, what happened? Massive loss of dollar value. Massive deflation. Great Depression. The Fed didn't re-inflate. That's what people say caused the GD, but they ignore the initial inflation beforehand. People who say a gold standard won't work are correct, but mainly because the banks and governments will still want to (unnaturally) expand the money supply. Again, Phokus, you can't see the forest from the trees.
so the gold coins i bought in 2002 for $450 bucks that are now worth 1400 bucks each was a bad investment?
does not compute.
Here are a couple ways:
PowerShares DB Gold Short (DGZ)
PowerShares DB Gold Double Short (DZZ)
ProShares UltraShort Gold (GLL)
Thanks. They're at 52-week lows, consistent with the increase in gold, I guess.
1. Your grand parents paid for it with silver. Open a history book.
Your comment makes no sense.
Gold over the long run, has a fixed value and rarely changes much in value, so the wages would remain around the same. If gold was the world's currency, the value would not fluctuate much at all because demand would be maxed out and there would be no competition from paper currency or anything else.
As far as paying an employee, it's market rate. Name a price and see if anyone applies for your job. Over time the wages will balance out to be fair on a world market. Supply and demand. If a worker demands a 1/10th of an ounce per hour, and the employer is willing to pay, based on their research into what average wages are in that industry, they will pay it. It's a chain reaction - the market will price workers.
I've made some SHTF investment in lead......To buy metals for SHTF scenario is quite stupid IMO...
Phokus, throughout history fiat currency has never survived. So how can a fiat currency be better than gold, which like this man has said, has been a currency for 3k+ years? Your argument just isn't there. I think buying mass amounts of gold as an investment in an "oh shit" scenario is silly, but owning gold is by no means a dumb idea.
How do you figure that gold has a fixed value over the long run when the supply of gold increases more slowly than does the world economy?
That is a good point. Gold in the past has increase because new economies have emerged.
Keep in mind, in my mind, I price everything in terms of purchasing power. My statement was I suppose a very scientific "in a vacuum" statement, that gold would not increase if all economies of the world were equal.
I compare it to real estate however. If you look at the price of real estate in the US over the past 100 years, you'll find it increased in value only enough to keep up with inflation, thus not increasing in value at all.
It's only worth what someone is willing to pay for it........................................
When the shit hits the fan people scramble for eggs, milk and bread. let alone trying to hide or secure qualities of gold. Tell me when you bought gold......did they give it to you personally or is it in a safety deposit box you have never seen before- except on a photo on a website..............fool!
Hell, I scramble some eggs every sunday! never mind the shit hitting the fan!
You want a solid currency, try homebrew beer or lamb legs or something you can eat and trade easy for some ammo, flour, sugar n shit!
I can see gold at $20,000 an ounce, maybe $50k if such an event happened. Laugh if you want but it's possible.
You could have food inflation and housing deflation. I don't think the egg/house cost ratio remains constant.
