Posted on 12/01/2005 10:40:52 AM PST by .cnI redruM
$850/ Troy Oz. in 1980 dollars. Even discounting that last year of Carter-flation, that would require a spot price of $2,073.2/ Troy Oz. today to break even if you bought
"The price is an omen of rampant inflation; bonds are doomed; the dollar is about to fall prey to the United States' reckless deficits; the euro will shortly be revealed as a worthless creation of bureaucrats.
Only the last will prove true....
I never understood the "barbarous relic" nickname.
Does anyone know WHY gold should or might be considered a "barbarous relic"?
I've never heard one of the gold hucksters on radio fail to proclaim that now was the time to buy gold.
Because the gold standard is an ancient standard. In order for a monetary standard to be valuable, it needs to be based on something truly rare. That's why I'm proposing that we move to what I call the "Honest Democrat" standard. If we base our monetary standard on something truly rare - the rarest thing I can think of is an Honest Democrat...
BUMP!
That was what Keynes called it.
Maybe because in modern society, the bulk of the economic GDP is services, not physical goods?
Out vast wealth is based on the knowledge of our workers. With modern technology, physical goods are of very little value. Probably 50 million farmers, and 50 million factory workers, could produce all the food and manufactured goods the world needs. The real value is in medical services, legal services, and entertainment.
If some wag posts pictures of swelling breasts, I for one will be offended. So I'm going to keep checking back to make sure that doesn't happen.
I always laugh when I hear the ads on radio telling me what a great investment gold is.
Usually by a company who is in the business of selling gold.
If it's so great, why are they selling it instead of hoarding it?
When was the gold market the hottest? When was everyone buying gold? When it went above $600 an ounce, about 23 years ago.
Remember the lines of people buying silver at $38 an ounce? It was going to $100. No, it topped at a little over $38. Silver just hit an 18 year high, at about $8.30 an ounce.
Where will gold go from here? I don't have a clue. But gold sellers sure are anxious to sell to me. If it is going to double, why are they so interested in selling to me?
You make a good point but there still is no reason why our money should not be backed with hard assets, is there?
Bears repeating.
Gold up $11.50 so far today.
Silver up .24 to above $8.50
Actually, in the 1980 squeeze, things were very interesting.
Gold topped at near $850/oz, while silver, at one point, reached a bit over $50 an ounce. Coming very close to the historical average of a 15-16 to one gold/silver ratio.
I've never understood the fascination with the 'gold standard'. It's like basing your money on tulips or some arbitrary substance you declare as the de facto standard for all that is valuable.
Yes, it is. Because our wealth is not physical, it can expand infinitely. If the money supply were based on a physical commodity, it could not be expanded to keep up, and massive deflation would have to occur.
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