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To: InternetTuffGuy
"A gold coin is still worth a good men's suit.

BS. A gold coin is curently worth 4 good men's suits. And 5 years ago a gold coin was barely worth the cheapest man's suit.

The stability purported for gold is not really there.

Over the long run, you can expect deflation with gold because the supply of gold does not grow as fast as the supply of goods in the economy. There are 5 billion oz of gold in the world. There are 6 billion people.

In the 1800's we had several depressions and one bout of hyper inflation during the gold rush.

Deflation is bad for the economy, because holding cash becomes better than investing in the economy.

167 posted on 12/12/2010 10:31:51 AM PST by DannyTN
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To: DannyTN
Over the long run, you can expect deflation with gold because the supply of gold does not grow as fast as the supply of goods in the economy. There are 5 billion oz of gold in the world. There are 6 billion people.

Wow, I've never heard anybody completely get basic supply and demand so bass ackwards like you just did. And so publicly.

I give you a FAIL. Epic.

168 posted on 12/12/2010 2:28:22 PM PST by InternetTuffGuy
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