Don't Get Too Excited About Gold -- It's Actually DOWN Compared To The Euro

Business Insider ^ | 10/03/2010 | Clemens Kownatzki, FXIS Market Insights

[ixtl]

I have read Greenspan’s article, and I agree with him, but that does not mean gold has intrinsic value, quite the opposite.

As for diamonds, they are the most artificially valued commodity of all. If the diamond brokers released all the stock they are holding, the market value to diamonds would plummet.

[Milhous]

HOW ABOUT THE LONGER TERM?

Excellent idea! Here's a relatively recent chart courtesy of our friends over at jsmineset.com.

[M-cubed]

Do u have something in mind that has “actual” intrinsic value that would or should replace gold??

I'm all ears if u do..

[Milhous]

Gary North also started publishing The Gold Price in Four Different Currencies

Gold In Euro, $US, $A, And Yen

Weekly bar chart - semi-log scale
Gold in Euros, U.S. Dollars, Aus. Dollars, and Yen.
All charts with 20 week (100-day) Moving Averages.

[ixtl]

Sure; silver, platinum, iron, nickel, tin, lead even. Any substance that is durable and can be easily worked into coins or other units.

[aNYCguy]

These are excellent points. Also worth noting is that diamonds are basically indivisible, whereas gold is a homogeneous and virtually infinitely-divisible commodity. This does not bode well for diamonds' use as a store of wealth.

Natural diamonds are a cleverly marketed consumer jewelry product, and that's about it. I'm not a gold bug, and don't plan on participating in these threads, but I had to respond to your excellent post.

[aNYCguy]

“It doesn’t pay dividends or interest”, just like most tech stocks and savings accounts don’t.

Most savings accounts don't pay interest? Where could you possibly have gotten that idea?

[Kozak]

Sure; silver, platinum, iron, nickel, tin, lead even. Any substance that is durable and can be easily worked into coins or other units.

So, how many tons is that new Lead American Eagle going to be to replace the Gold one ounce Eagle ?

[Kozak]

Most savings accounts don't pay interest? Where could you possibly have gotten that idea?

Uh, the rates on basic checking accounts right now approximate zero, and with the fee's it frequently costs money to keep one open.

[jiggyboy]

Most banks are paying 0.10% on savings accounts up to $10,000. Ten bucks in interest in a year on ten thousand bucks where you might not be able to get at it? That’s zero.

[jiggyboy]

JPMorganChase is 0.10% up to $10,000 balance https://chaseonline.chase.com/resources/RateSheetForCons70311052010.pdf

Wells Fargo “High Yield Savings” is 0.05% up to $25,000 https://www.wellsfargo.com/savings_cds/rates

Bank of America is 0.10% for most accounts http://www.bankofamerica.com/deposits/checksave/index.cfm?template=ecommDepRates

[aNYCguy]

Most savings accounts don't pay interest?

Uh, the rates on basic checking accounts right now approximate zero

I'm going to let you figure out what's wrong with your response.

[aNYCguy]

Most banks are paying 0.10% on savings accounts up to $10,000.

1.35% on account balances above $1,000:

http://www.capitalone.com/directbanking/interest-plus-online-savings-account/how_it_works.php?linkid=WWW_Z_Z_Z_SP29_R1_02_T_SP29HW