Gold Remains Great for the Long Haul

Smart Money ^ | 07/17/2010 | Donald Luskin

[Atlas Sneezed]

To put the cost in perspective. They need .3 Grams to buy a loaf of bread. At Today’s price of Gold (March 12, 2009 $923.73 / Troy Ounce) .3 Grams of Gold = $8.91. They are paying $8.91 for a loaf of bread plus a days labor to pan for the gold.

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Actually, the $8.91 IS the value of the day’s labor.

[jiggyboy]

I’d add something like: “...so why are the retailers SELLING?”

That's less ambiguous than mine, indeed. I was trying to describe places like Blanchard and Goldline as well as individual coin shops, rather than a guy selling a coin to a pawn shop. That opposite side of the transaction is included in the perfectly contradictory "cash4gold doing good business".

I hope that one of these days I see both of those objections in the same article or thread comment.

[jiggyboy]

That’s an absolutely excellent economic observation / calculation. Their net expenditure for the day is “only” the labor to get the gold.