Should we expect massive global inflation in the coming years?

[bamacre]

I'm reading a lot of speculation about currency wars lately - countries depreciating the of their "dollar" value in order for its exports to have improved value. That seems more likely with the aforementioned excess capacity out there today.

Yes. There does appear to be a currency war brewing. And the US would like to "win," of course. We don't have a "strong dollar" policy, that's for sure. Folks our interest rates are at ZERO percent. Money is being printed as I type, and even they will admit, they will not be raising rates any time soon. To plan on gold dropping heavily while the printing machines are running 24/7 is not a good bet. And you can add most other commodities to that list. If we were in a deflationary period, commodities would not have had the September they did. As Peter Schiff recently said, the box of Uncle Ben's rice in his cabinet had a better month than the stock market.

 

[bamacre]

doesn't make sense why it should be valuable in western cultures, it was valuable historically because it flatters middle-eastern skin tones.

Silver or a non-tarnishing similar metal (palladium? titanium? etc) might be more valuable if white people were the rulers of society for 4000 years pre-AD.

LOL, yeah but they weren't.

 

[sandorski]

Hahaha, and the reason it will fall? Because the paper/electronic data issued and backed by full faith of the US Govt(that everyone says they don't trust to) is so much more valuable?

Pretty much. It's a worse investment than Real Estate. At least people need to live in a Home.

 

[sandorski]

Because?

Again Gold is a currency.

Sure, there will be some speculation and people that try to use gold in that way might get burned (specially if they need liquidity for daily use). And beware of ETFs. Prefer physical gold when buying.

Since gold is a currency its value in dollars will depend of how good or bad the US economy will be doing and depend on the amount of dollars in circulation.

In the last month gold won 6% vs USD but lost 2% vs Euro, so it isn't because of speculation that gold prices are rising - it is because of USD weakness and that is related to the FED quantitative easing measures.

As Craig said in this thread, inflation makes the US government deficit and the US trade deficit easier to pay. What he forgot to say is that KILLS people savings/earnings purchasing power.

So if you have savings in USD get out of it because your dollars are losing value and most other currencies are doing the same.

Additionally there is a reason Central banks stopped selling gold and started buying it to bolster their reserves.

Gold is an Emotional Security Blanket. Nothing more.

 

[zephyrprime]

It's easy to make fun of the people who are buying up gold but the data does not lie. For those who say we should not expect future inflation, is this time really different?

The historical record is pretty clear. We haven't had any defaults in this crisis yet, however.

 

[BigDH01]

Yes. There does appear to be a currency war brewing. And the US would like to "win," of course. We don't have a "strong dollar" policy, that's for sure. Folks our interest rates are at ZERO percent. Money is being printed as I type, and even they will admit, they will not be raising rates any time soon. To plan on gold dropping heavily while the printing machines are running 24/7 is not a good bet. And you can add most other commodities to that list.

Why would we have a strong dollar policy? We are getting killed and we aren't making anything because our dollar is overvalued compared to the yuan. The solution is not a stronger dollar. And it's hard to take Peter Schiff too seriously given that gold was supposed to hit 2k an ounce in 2009. How well did his customers do?

http://piggington.com/anyone_used_euro_pacific_capital

These guys don't seem too happy.

If we were in a deflationary period, commodities would not have had the September they did. As Peter Schiff recently said, the box of Uncle Ben's rice in his cabinet had a better month than the stock market.

Confirming my suspicion that Peter Schiff is a moron. Maybe, if you looked into it, you'd see that the market had its best September in 71 years... and gasp... outperformed gold for the month. No wonder he loses so much money for his investors.

 

[GaiaHunter]

Confirming my suspicion that Peter Schiff is a moron. Maybe, if you looked into it, you'd see that the market had its best September in 71 years... and gasp... outperformed gold for the month. No wonder he loses so much money for his investors.

This year so far DOW went up 5.5% and gold 26%.

I'm not exactly sure what kind of losses or winnings Peter Schiff clients have but if they have been buying gold this year it has clearly been a better investment that US stock market.

 

[BigDH01]

This year so far DOW went up 5.5% and gold 26%.

I'm not exactly sure what kind of losses or winnings Peter Schiff clients have but if they have been buying gold this year it has clearly been a better investment that US stock market.

So what? Go back even further when Peter Schiff was all over the news making calls for gold in late 2008. Figure the return if I had done that or if I had purchased index fund tied to the S&P 500 (especially if I was really smart and bought this fund in early 2009 when things really hit the fan). All of a sudden it doesn't look so hot, especially if you consider his "decoupling" losses. Tell me, where's the Euro? What about the loon? What happened to these assets? Oh, that's right, they're still not up to 2008 levels. How do I know this? Because I thought like Schiff. I held the Euro in 2008 when it was 1.50 and I lost money on it. Unlike Schiff, though, I don't trade to a broken record.

 

[JMapleton]

Gold is an Emotional Security Blanket. Nothing more.

You fail at logic.

Gold is a universally accepted form of value. It's accepted EVERYWHERE for value, which is why it will always remain valuable.

I've explained in detail why gold is valuable and why it's the only true form of currency. Anyone who denies this is foolish.

You're an internet troll who never refutes, you just blank statements with no arguments behind them. What's the point of posting?

 

[BigDH01]

You fail at logic.

Gold is a universally accepted form of value. It's accepted EVERYWHERE for value, which is why it will always remain valuable.

I've explained in detail why gold is valuable and why it's the only true form of currency. Anyone who denies this is foolish.

You're an internet troll who never refutes, you just blank statements with no arguments behind them. What's the point of posting?

http://www.levyinstitute.org/pubs/wp86.pdf

 

[GaiaHunter]

I never understood the fascination with gold, other than for ostentatious purposes. How exactly is gold different from money? We give it value for its rarity, but it's only a yellow rock, another medium of exchange like money. If the economy completely collapses gold will not feed you if you are hungry, it will not protect you from danger. Gold is only valuable because we give it to it - imaginary value that is. As a tool for basic survival it is worthless.

And FIAT money will feed you or protect you from danger?

It is just a medium of exchange with an imaginary value.

So what is the difference between gold and paper money?

Gold is rare, is portable, is dense but very malleable, doesn't tarnish or rust, its warm yellow colour seems to be appreciated by humans, can be highly polished, etc.

Gold is rarer and harder to get than paper money, making it honest money. Central banks can't simply print 50 tons of gold out of thin air but they can certainly print 50 tons of paper money that will make yours and mine money less valuable.

People (some) don't see gold as money because they've been used to the paper money and so have it ingrained that paper money is of value when it is just paper.

People from 100 years ago would have just laughed at the notion paper money with no backing by precious metals is money.

Do you think that you would have this "currency wars", best know as "let make our individual citizens as poor as we can", or these huge trade/budget deficits if money was gold instead of paper?

 

[GaiaHunter]

So what? Go back even further when Peter Schiff was all over the news making calls for gold in late 2008. Figure the return if I had done that or if I had purchased index fund tied to the S&P 500 (especially if I was really smart and bought this fund in early 2009 when things really hit the fan). All of a sudden it doesn't look so hot, especially if you consider his "decoupling" losses. Tell me, where's the Euro? What about the loon? What happened to these assets? Oh, that's right, they're still not up to 2008 levels. How do I know this? Because I thought like Schiff. I held the Euro in 2008 when it was 1.50 and I lost money on it. Unlike Schiff, though, I don't trade to a broken record.

Euro is 1.39 and going up (mostly because USD is going down).

And why 2008? Because it is the year the USD made a come back?

Why don't you apply those Schiff picks to the period of 2000-2010? Because gold went up from $300 to $1330 in that time? He was saying gold back then while everyone was houses and more houses.

What if you had bought USD this year when EURO/USD was at 1.19 and every monkey was saying parity and Euro to go down? 16% losses in a few months then, hmm?

Investing short term isn't a really good indicator. If you invest short term your bond to have to sell when prices are going down. If you can invest long term, you have much more flexibility.

 

[BigDH01]

Euro is 1.39 and going up (mostly because USD is going down).

And it's still not up to where it was in 2008, there year Schiff was everywhere telling people to dump the dollar.

And why 2008? Because it is the year the USD made a come back?

No, because that was the year Schiff made an ass out of himself here:

http://www.goldstockbull.com/articles/peter-schiff-on-fast-money-calls-2000-gold-in-2009/

Why don't you apply those Schiff picks to the period of 2000-2010? Because gold went up from $300 to $1330 in that time? He was saying gold back then while everyone was houses and more houses.

Why don't you apply those Schiff picks to 1990 to 2010? I was screaming stocks back then when everyone was screaming gold.

What if you had bought USD this year when EURO/USD was at 1.19 and every monkey was saying parity and Euro to go down? 16% losses in a few months then, hmm?

What if I had sold all my gold and purchased an s&p 500 index on Sept 1, hmm?

Investing short term isn't a really good indicator. If you invest short term your bond to have to sell when prices are going down. If you can invest long term, you have much more flexibility.

And if I was really long term, what would have done better for me? Let's say I want to retire tomorrow and started my investment 30 years ago.

http://www.chrismartenson.com/forum/sp-500-has-outperformed-gold-20-yr-and-30-yr-basis/43312

Wow, you're right. Clearly, I should dump everything and buy gold. It obviously doesn't suffer bubbles like other assets or commodities. This time is different.

On second thought... nah. I'll take the capital gains AND dividends I'm taking from the market over the long run, but thanks.

 

[GaiaHunter]

Euro is 1.39 and going up (mostly because USD is going down).

And it's still not up to where it was in 2008, there year Schiff was everywhere telling people to dump the dollar.



No, because that was the year Schiff made an ass out of himself here:

http://www.goldstockbull.com/articles/peter-schiff-on-fast-money-calls-2000-gold-in-2009/

But he was also saying that before and he is saying that now. Additionally he doesn't say to not buy stocks. He says US stocks are generally a bit over priced compared to other markets.

And of course, stocks isn't USD is it?

Why don't you apply those Schiff picks to 1990 to 2010? I was screaming stocks back then when everyone was screaming gold.

Why not 1890?
He wasn't making them in 1890 and wasn't making them in 1990.

What if I had sold all my gold and purchased an s&p 500 index on Sept 1, hmm?

You would be around par at the moment. And that only took the best September in 70+ years.

Of course if you had bought other commodities you would be doing worse.

And if I was really long term, what would have done better for me? Let's say I want to retire tomorrow and started my investment 30 years ago.

http://www.chrismartenson.com/forum/sp-500-has-outperformed-gold-20-yr-and-30-yr-basis/43312

Lol.

Quoting some guy from that link you provided

SPX 1976 average 102/ 1083 = 1060% return

Gold 1976 average 124/ 1215 = 979% return

From 1976 we have comparable returns. Interesting...

Actually 30 years ago would have been 1980.

So lets see.

1980 gold avg price - 612.74 S&P500 - 117
9/10/2010 gold price - 1347 S&P500 - 1165

20 years

1990 gold - 383.59 S&P500 - 326
2010 gold - 1347 S&500 - 1165

Cool hein?

On second thought... nah. I'll take the capital gains AND dividends I'm taking from the market over the long run, but thanks.

And is the US stock market the only market around? Look at some Asian markets that have been doing much better.

 

[DominionSeraph]

1st) Opposed to paper you can't print gold. You can mine more but it requires a gold mine and effort.

But you can mine it. So you're giving certain people the ability to print money.

And deflationary currencies are bad for economic growth. Nobody wants to spend because you're making money by holding on to it, and nobody wants to borrow because you're taking the double hit of paying interest and paying in deflated currency.

2nd) Do you carry paper at all these days?

I carry my credit/debit card - much easier.

Paper; electronic - same thing.

Lemme give you food for thought - what if you have your gold on a bank, like you have paper money and then use an electronic card to do your transactions?

"The dinner will be $100 or 2.5g of gold, please."
"I'll pay with my gold card." ---> 2.5g of gold deducted form Mr.GaiaHunter gold account and transferred to Restaurant GoodMeals account.

It was never an easier time to use gold as currency if we choose to.

Lemme give you food for thought.
"The dinner will be $100."
You pay him $100.
You look online. Gold is $1347/oz.
"I just paid him 0.074 oz."

No need to use gold at all.

 

[DominionSeraph]

Gold is a universally accepted form of value. It's accepted EVERYWHERE for value,

No, dollar's accepted in far more places.

You ain't gonna be paying for gas in gold without paying a hefty surcharge to pay for the trouble the owner's gonna have to go through to convert that crap to dollars.

 

[BigDH01]

But he was also saying that before and he is saying that now. Additionally he doesn't say to not buy stocks. He says US stocks are generally a bit over priced compared to other markets.

So I'll just go and say "buy s&p" and when I'm wrong I'm right and when I'm right I'm right. Sweet deal for Schiff.

And of course, stocks isn't USD is it?

Nope, sure aren't, just represent assets denominated in dollars. Just as most people who "own" gold don't actually have gold bullion in their possession.

Why not 1890?
He wasn't making them in 1890 and wasn't making them in 1990.

I was illustrating to you that people make all sorts of claims at all sorts of times (in all sorts of bubbles). In that video I posted he claimed that gold would be at 2000 in 2009. Was he even remotely close?

You would be around par at the moment. And that only took the best September in 70+ years.

I would've been better off in all s&p than I would've been in gold.

Of course if you had bought other commodities you would be doing worse.

Unless Schiff, around 2001, had told me to purchase platinum instead. Hell, he could've told me to buy it in 2008 after it crashed and he was making these bold proclamations. It would've provided me a 100% return (GOOG or AAPL would've been even wiser).

Lol.

Quoting some guy from that link you provided



Actually 30 years ago would have been 1980.

So lets see.

1980 gold avg price - 612.74 S&P500 - 117
9/10/2010 gold price - 1347 S&P500 - 1165

20 years

1990 gold - 383.59 S&P500 - 326
2010 gold - 1347 S&500 - 1165

Cool hein?

Not especially. Can you use the dividends you were paid from gold to calculate its cost basis for me instead of just relying on spot price?

And is the US stock market the only market around?

No?

Look at some Asian markets that have been doing much better.

So now I can own some asset denominated in some other fiat currency (one of the most important of which being pegged to the dollar).

 

[GaiaHunter]

But you can mine it. So you're giving certain people the ability to print money.

The peak gold production was in 2000 with 2600 metric tons. At current price that is under $115Mn.

See the gold value as a restrain for huge budget deficits/crazy expenditures and currency debasement?

How many billions of dollars did the FED print just this year?

 

[GaiaHunter]

So I'll just go and say "buy s&p" and when I'm wrong I'm right and when I'm right I'm right. Sweet deal for Schiff.

Is the S&P more valuable than gold lately?

In the last 10 years gold outperformed stocks.

People just need to adapt to market and economic conditions.

Nope, sure aren't, just represent assets denominated in dollars. Just as most people who "own" gold don't actually have gold bullion in their possession.

And gold is also an asset denominated in dollars.

Both stocks and gold are rising, not because some speculative bubble (it is hard to be a bubble when you find so many people saying gold is a bubble so don't buy it, which generate fear. Look at the dotcom and house bubble - almost no one was saying it was a bubble until it burst) but because of the debasement of USD currency caused by monetary easing (or until 20 years ago what was called inflation).

I was illustrating to you that people make all sorts of claims at all sorts of times (in all sorts of bubbles). In that video I posted he claimed that gold would be at 2000 in 2009. Was he even remotely close?

And did gold went down since then? Did he buy gold at $1900 or something?

I would've been better off in all s&p than I would've been in gold.


Unless Schiff, around 2001, had told me to purchase platinum instead. Hell, he could've told me to buy it in 2008 after it crashed and he was making these bold proclamations. It would've provided me a 100% return (GOOG or AAPL would've been even wiser).

If I'm not mistaken Schiff advocates more commodities and not just gold.

But I understand the focus on gold. Platinum, silver, palladium are all commodities that have their value linked to industrial applications (gold also has but to much less extent) which mean they are potentially more volatile.

Not especially. Can you use the dividends you were paid from gold to calculate its cost basis for me instead of just relying on spot price?

It is a fact that stocks pay dividends - actually that is the real value of stocks and not its sell price.

But again narrow S&P to the last 10 years vs gold. Even with dividends.

http://finance.yahoo.com/q/hp?s=^GSPC&a=00&b=3&c=2000&d=09&e=9&f=2010&g=m&z=66&y=66

Jan 2000 - close 1,394.46 adjust for dividends and splits 1,394.46
Oct 2010 - close 1,165.15 adjusted for dividends and splits 1,165.15.

http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm

2000's Price Change -2.7% Total Return -1.0% Inflation 2.5% Real Price Change -5.1% Real Total Return -3.4%

Guess it went down in the last 10 years.



Remember me again, though, why did we change from the discussing if inflation is/will rise and gold is or isn't a bubble to discuss Schiff?

Because I though you were saying gold is a bubble.

In my view all seems to indicate gold is still undervalued (from an historical point of view as currency) and with monetary easing all around the world and expectations for even more monetary easing gold price will go up.

The only way I see for gold go down is if the monetary easing stops and interest rates go up. I just don't see how will that happen though.

 

[BigDH01]

Is the S&P more valuable than gold lately?

In the last 10 years gold outperformed stocks.

And in the last 20 years, stocks outperformed gold. This is not the first time we've had a commodity bubble. You're using the performance of gold in the last four years (during a time with great economic turmoil) to try and make a larger statement about the macroeconomy. That somehow this means that our dollar is being debased and people are fleeing for gold. The reality is that over the long run, stocks will win.

People just need to adapt to market and economic conditions.

True, but gold is not the answer.

And gold is also an asset denominated in dollars.

And just like dollars, it only has any real value if people are willing to trade it for something I actually want.

Both stocks and gold are rising, not because some speculative bubble (it is hard to be a bubble when you find so many people saying gold is a bubble so don't buy it, which generate fear.

I think people are creating a gold bubble because of fear, not in spite of it.

Look at the dotcom and house bubble - almost no one was saying it was a bubble until it burst) but because of the debasement of USD currency caused by monetary easing

That's a bit of revisionist history. I distinctly recall surfing sites like The Housing Bubble Blog long before I ever heard of people like Schiff.

(or until 20 years ago what was called inflation).

Yet inflation remains quite low and people still strongly crave the dollar.

And did gold went down since then? Did he buy gold at $1900 or something?

If I make the claim that AAPL will hit 1000 next year but they only hit 400, would you take me seriously? Especially if that claim was a part of some larger paradigm that I'm trying to sell you?

If I'm not mistaken Schiff advocates more commodities and not just gold.

I've never seen him tell me to buy platinum, but I don't surf youtube all day looking for his insight.

But I understand the focus on gold. Platinum, silver, palladium are all commodities that have their value linked to industrial applications (gold also has but to much less extent) which mean they are potentially more volatile.

You mean they might have some actual use-value instead of just being a metal we hope other people desire.

It is a fact that stocks pay dividends - actually that is the real value of stocks and not its sell price.

But again narrow S&P to the last 10 years vs gold. Even with dividends.

Or expand it to time frames people retiring would actually have and watch gold get annihilated.

Wiki actually has the better chart...

http://en.wikipedia.org/wiki/S&P_500#Total_annual_returns_.28b.29

$1 in 1988 would've given me $7 in 2009. A 700% percent return.

Remember me again, though, why did we change from the discussing if inflation is/will rise and gold is or isn't a bubble to discuss Schiff?

We didn't. My first response was ridiculing Schiff's statement.

In my view all seems to indicate gold is still undervalued (from an historical point of view as currency) and with monetary easing all around the world and expectations for even more monetary easing gold price will go up.

I disagree. I think the price of gold is being driven primarily by irrationality. It signals extreme inflation or currency debasing like $140 barrel oiled signaled peak oil.

The only way I see for gold go down is if the monetary easing stops and interest rates go up. I just don't see how will that happen though.

I think it will go down when people start thinking rationally again and realize that traditional equities are the better investment (yes, even if that equity is foreign).

 

[GaiaHunter]

And just like dollars, it only has any real value if people are willing to trade it for something I actually want.

I don't have much time at the moment but I want to answer a few points.

1st) Money exists for a reason. It is practical. Just because someone doesn't accept the Zimbabwean dollar that doesn't make other forms of money invalid.

At the moment people aren't used to trade goods for gold - but that happened before and might happen again.

I bet people in Zimbabwe prefer gold to Zimbabwean dollar (that is no longer active due to hyper inflation).

That's a bit of revisionist history. I distinctly recall surfing sites like The Housing Bubble Blog long before I ever heard of people like Schiff.

I didn't say Schiff was the first or the only one talking about the housing bubble. If you have a problem with Schiff I'm not him or his attorney just because I believe inflation is being created and gold isn't a bubble.

Yet inflation remains quite low and people still strongly crave the dollar.

You mean prices remain low - still, but prices like stocks and commodities are going up.. Dollar is losing value. Just look at the dollar index

Until 20 years or so inflation was the increment of the money supply compared to the amount of products available. Recently people adapted the definition to increase in prices. By the old definition, increase in prices doesn't mean inflation but it can happen as a consequence of it.

If I make the claim that AAPL will hit 1000 next year but they only hit 400, would you take me seriously? Especially if that claim was a part of some larger paradigm that I'm trying to sell you?

Tell me about 1 guy that got everything right when he is making a future economic prediction.

Pretty much everyone that talks about it failed, especially if they get down to specifics.

You don't like the guy and his message, that is ok.

About the gold we will see if it is a bubble or not.

 

[halik]

You fail at logic.

Gold is a universally accepted form of value. It's accepted EVERYWHERE for value, which is why it will always remain valuable.

I've explained in detail why gold is valuable and why it's the only true form of currency. Anyone who denies this is foolish.

You're an internet troll who never refutes, you just blank statements with no arguments behind them. What's the point of posting?

That generic investment thesis worked great in the early 80s

I love that people arguing for gold generally have no background in finance/economics/investment management. Gold is a fiat just like anything else, since bulk of the 1300/oz price is composed of its extrinsic value.

 

[DominionSeraph]

The peak gold production was in 2000 with 2600 metric tons. At current price that is under $115Mn.

It's 112.6 billion.

About the gold we will see if it is a bubble or not.

There's no question.
It's being bought on speculation it's currency. But when the gold holders want to spend, they're going to have to convert to dollars, rather demonstrating that gold is shit currency.
But who in their right mind is going to purchase that gold from them when it's useless? Nobody; that's who.

 

[BigDH01]

I don't have much time at the moment but I want to answer a few points.

1st) Money exists for a reason. It is practical. Just because someone doesn't accept the Zimbabwean dollar that doesn't make other forms of money invalid.

Perhaps, but I bet you can't tell me the price of any good in gold without first converting that gold into dollars.

At the moment people aren't used to trade goods for gold - but that happened before and might happen again.

How in the hell is that going to happen? You think if the dollar was suddenly worthless that people would turn to gold? I've got news for you, most people have no idea what the spot price of gold is, own much, if any, gold, or have any idea where to get it.

I bet people in Zimbabwe prefer gold to Zimbabwean dollar (that is no longer active due to hyper inflation).

I bet the people in Zimbabwe prefer food and guns to gold.

I didn't say Schiff was the first or the only one talking about the housing bubble. If you have a problem with Schiff I'm not him or his attorney just because I believe inflation is being created and gold isn't a bubble.

Just pointing out that people besides the hot air on tv saw a bubble and were talking about it long before it happened.

You mean prices remain low - still, but prices like stocks and commodities are going up.. Dollar is losing value. Just look at the dollar index

So what? Do you think that people really care about the price of gold when inflation is low?

You keep saying that gold is valuable as a currency. Why? Because some investors have bid the price up to ridiculous currency? You know what a powerful currency is? The dollar.

On Monday, 139 million people in this country are going to wake up and go to work. They are going to trade their time not for silver, platinum, gold, or wheat, but the US dollar. They may stop to get food and toiletries after work and they are going to pay with dollars. Maybe they'll stop by the post office and pay their tax liability, their car note, or their mortgage... all in USDs. I guarantee you that most of those workers couldn't tell you the spot price of gold, and most probably wouldn't give a damn. Yet, I'm supposed to be impressed about the price of an ounce of gold and gold's value as a currency. Sorry, I'm just not impressed. Can you tell me the price of anything in this country in gold without first converting that gold into dollars?

Until 20 years or so inflation was the increment of the money supply compared to the amount of products available. Recently people adapted the definition to increase in prices. By the old definition, increase in prices doesn't mean inflation but it can happen as a consequence of it.

If someone's dollar buys the same product tomorrow that it does today, why would they suddenly feel the need to conduct all future exchanges in some commodity that they likely don't own or have access to?

Tell me about 1 guy that got everything right when he is making a future economic prediction.

I won't. Then again, I don't follow anyone's investment advice or constantly quote these people like some of the posters here do.

About the gold we will see if it is a bubble or not.

We will. We'll see how long an asset who's only value is some intrinsic belief it will replace the dollar can continue to sell at all given that those who believe this would be pretty hypocritical to buy and then sell their gold for dollars. Did you ever think it was a little odd that despite the fact that the reason the value of gold is so high is because it's going to replace the dollar, I can always seem to use dollars to buy it. I mean, if it's high because people actually believe it's a dollar replacement, why are these people still willing to trade it to me for dollars at all? Why would they give me their gold for my dollar? I can only think that they rode the asset bubble for a tidy profit or that when faced with the real world they realized that people can't actually buy anything useful without first converting into dollars.

 

[sandorski]

You fail at logic.

Gold is a universally accepted form of value. It's accepted EVERYWHERE for value, which is why it will always remain valuable.

I've explained in detail why gold is valuable and why it's the only true form of currency. Anyone who denies this is foolish.

You're an internet troll who never refutes, you just blank statements with no arguments behind them. What's the point of posting?

meh, go ahead lose your $. Just know that you were warned.