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The Return of the Gold Bugs
Newsweek ^ | December 7, 2005 | Robert Samuelson

Posted on 12/07/2005 10:10:37 AM PST by DebtAndDelusion

The price of gold passed $500 an ounce last week, its highest level since the late 1980s. This is either an ominous development—or it isn't...

If you'd lived a century ago, gold would have been the basis of your money. Great Britain dominated the global gold standard; its currency, the pound, was freely convertible into gold...

On April 5, 1933, President Franklin D. Roosevelt ordered Americans to surrender their gold coin; the country effectively went on a paper-money standard...

Higher demand collides with constricted supplies; wham, prices rise...

Gold is an unending mystery, because its value lies less in what it does for us (it is not like sugar, copper or oil) and more in what it symbolizes. It is almost as unfathomable as the human drama itself.

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: buymygold; gold; goldbubble; goldbuggery; goldgoldgold; goldmineshaft; goldmineshafted; goldshillsahoy; insanity; yellowmetalfever; yukoncornelius
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To: Toddsterpatriot

"Great, let me know when our fiat money collapses."

I bought a Fiat in 1972 and it collapsed in 1974. Does that count?


101 posted on 12/08/2005 10:48:10 AM PST by BeHoldAPaleHorse (MORE COWBELL! MORE COWBELL! (CLANK-CLANK-CLANK))
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To: Toddsterpatriot
Absent a fiat currency collapse does gold always protect your wealth?
Yes. The purchasing power of gold remains the same. One ounce of gold will buy you a good suit no matter the spot price of gold. Fiat currency has no value. It is an IOU.

When I can't trade my interest and dividends for food, no one will be living high on the hog
But those with gold will be living better than those without. After the crash of '29, many had to trade their cars for food. Those with gold drove the finest automobiles.
.
102 posted on 12/08/2005 10:48:57 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: mugs99

"Yes. The purchasing power of gold remains the same. One ounce of gold will buy you a good suit no matter the spot price of gold."

I once believed that, until I saw someone try to buy a suit with an ounce of gold. The store owner threw him out.

"But those with gold will be living better than those without. After the crash of '29, many had to trade their cars for food. Those with gold drove the finest automobiles."

The folks who drove the finest automobiles after the crash were the same folks who drove them before the crash.


103 posted on 12/08/2005 10:51:53 AM PST by BeHoldAPaleHorse (MORE COWBELL! MORE COWBELL! (CLANK-CLANK-CLANK))
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To: AFPhys
twenty five years ago, 100 ounces of gold would buy you a nice 4 bedroom house.
today, 100 ounces of gold would buy you about one-fourth of that house


That's a warning sign that housing is overpriced and financing is out of control. I see that as a need to store more gold.
.
104 posted on 12/08/2005 10:55:42 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: BeHoldAPaleHorse
Until someone trades you a copper-jacketed piece of lead for your gold, and everything else you have, of course

You don't need gold to get robbed, and the robber doesn't always win.
.
105 posted on 12/08/2005 10:58:55 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: mugs99

In the situation you describe, where there's general economic collapse, it's not a question of IF you will get robbed of everything you have, it's a question of WHEN.


106 posted on 12/08/2005 11:01:16 AM PST by BeHoldAPaleHorse (MORE COWBELL! MORE COWBELL! (CLANK-CLANK-CLANK))
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To: BeHoldAPaleHorse
I once believed that, until I saw someone try to buy a suit with an ounce of gold. The store owner threw him out

That store owner was a fool. I have never had a problem spending gold. It has been my experience that people will give you a better deal for gold.
.
107 posted on 12/08/2005 11:04:12 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: mugs99

"That store owner was a fool. I have never had a problem spending gold. It has been my experience that people will give you a better deal for gold."

Where the f*** do you live, Somalia?


108 posted on 12/08/2005 11:04:44 AM PST by BeHoldAPaleHorse (MORE COWBELL! MORE COWBELL! (CLANK-CLANK-CLANK))
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To: mugs99
Yes. The purchasing power of gold remains the same.

That's funny. How much did a $900 ounce of gold buy in 1980? How much does a $500 ounce of gold buy today? The same amount?

109 posted on 12/08/2005 11:07:26 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: BeHoldAPaleHorse
In the situation you describe, where there's general economic collapse, it's not a question of IF you will get robbed of everything you have, it's a question of WHEN.

The strong take from the weak. I'm not weak.
.
110 posted on 12/08/2005 11:08:55 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: mugs99

"The strong take from the weak. I'm not weak."

And the stronger take from the strong.


111 posted on 12/08/2005 11:10:50 AM PST by BeHoldAPaleHorse (MORE COWBELL! MORE COWBELL! (CLANK-CLANK-CLANK))
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To: mugs99
Fiat currency has no value. It is an IOU.

That's funny too! I just bought some food with my fiat money. It must have some value after all. I bet I could even buy gold with fiat money. My fiat money must be really valuable if I can get people to give me that valuable gold for it!!!

112 posted on 12/08/2005 11:15:01 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: Toddsterpatriot
That's funny. How much did a $900 ounce of gold buy in 1980? How much does a $500 ounce of gold buy today? The same amount?

The same as it did in 1980. If you want to use the 1980 spike you need to factor in the daily spot price. Gold must be averaged. The post Carter inflation of those days is just another example why gold is good insurance.
.
113 posted on 12/08/2005 11:15:42 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: Toddsterpatriot
That's funny too! I just bought some food with my fiat money. It must have some value after all. I bet I could even buy gold with fiat money. My fiat money must be really valuable if I can get people to give me that valuable gold for it!!!

ROFL!!!
Fiat money has collapsed many times in history. Gold never has. Money is a measurement of labor. You have to do more labor for those fiat dollars than I do for gold. You can trade me your five hours of labor for my one hour any day!
.
114 posted on 12/08/2005 11:25:34 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: mugs99
The same as it did in 1980.

I don't know what planet you're on but $500 worth of anything buys less today than $900 bought in 1980. Just a little matter of 25 years on inflation, not to mention the 44% drop in gold value.

Unless there was deflation on your planet?

115 posted on 12/08/2005 11:25:43 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: mugs99
Fiat money has collapsed many times in history.

And yet the dollar is still here.

You have to do more labor for those fiat dollars than I do for gold.

Huh?

You can trade me your five hours of labor for my one hour any day!

Why would your hour of "gold labor" be more valuable than my 5 hours of "fiat labor"?

116 posted on 12/08/2005 11:29:25 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: BeHoldAPaleHorse
Where the f*** do you live, Somalia?

I live in the Sierras but I've purchased with gold in San Francisco, Los Angeles, Las Vegas, Austin, Boise and Missoula to name a few.
.
117 posted on 12/08/2005 11:33:00 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: Toddsterpatriot
And yet the dollar is still here

And will be after the next collapse. It just won't be worth as much.

Why would your hour of "gold labor" be more valuable than my 5 hours of "fiat labor"?

I don't know, I just mine the stuff.
Ask your boss.
.
118 posted on 12/08/2005 11:38:09 AM PST by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: mugs99
I thought you were talking about gold, the metal. You're obviously dealing with Acapulco Gold. Now your drug addled comments make more sense.

Smoke up dude!!

119 posted on 12/08/2005 11:46:01 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: Toddsterpatriot

"Why would your hour of "gold labor" be more valuable than my 5 hours of "fiat labor"?"

Because any labor on a Fiat is wasted. :)


120 posted on 12/08/2005 12:40:28 PM PST by BeHoldAPaleHorse (MORE COWBELL! MORE COWBELL! (CLANK-CLANK-CLANK))
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