Posted on 09/05/2011 8:52:42 AM PDT by Atlas Sneezed
Bloomberg can't be posted.
http://www.bloomberg.com/news/2011-09-05/gold-climbs-a-3rd-day-as-u-s-europe-economic-concerns-drive-haven-demand.html
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Now:
FTSE -3.24%
DAX -5.28%
CAC40-4.75%
Holy Crap,I sold back at $750 thinking it could never go higher!
Where is that shoe you pull a rope and it kicks You?
Looks like silver broke $43, too but has receded a bit.
ZERO hope in the dollar.
ZERO hope in future spending.
ZERO hope in the equities markets.
ZERO hope in T-bills and notes.
ZERO.
That’s what they elected.
That’s what they got.
Too bad Rush’s “hope” was not realized, as Obammie the Commie is succeeding fully in fulfilling his ulterior agenda.
its not gold that is increasing but USD that is crashing
The euro is going down, first
75% of the world’s gold is not bought in the US
Shows what the “emerging markets” and the global bankers think is the way to preserve assets from what lies ahead
Generally agree on USD crashing; however, the USD increased in value by $10.4, sic. gold is up at this time by $16.3 instead of $26.7! The scenario that I follow is the EURO crashes, the EUROpeans rush the USD, then Bonds, then see our USD / bonds are as tenuous as the EURO and GO FOR GOLD! JMO
I don’t think it’s too late to get back in. Buying gold is basically a bet that politicians and central bankers are dirty rotten scoundrels who either have no clue what they’re doing or are actively trying to destroy their currencies so as to be able to pay back their obscene borrowings at a lower cost. Which side of that bet should you place your money on?
One question. If the Euro, Dollar etc crashes (China’s wong isn’t any better) and gold soars, who will buy gold, who will sell and for WHAT????
One question. If the Euro, Dollar etc crashes (China’s wong isn’t any better) and gold soars, who will buy gold, who will sell and for WHAT????
Good post thank you.
“its not gold that is increasing but USD that is crashing”
Yes good point,the exchange rates are poor for the dollar, against the Philippine Peso or the Kuwait Dinar.
The requirement for a coincidence of wants in a transaction is why pure barter simply doesn't work. We need money.
We currently use fiat currency in place of money: but we are starting to realize why this is unworkable. Fiat currency does not act as a store of value: only money - true money - acts as a store of value while retaining all the other qualities of currency (easy to carry etc). Only Gold and Silver fulfill all of the prerequisites of money.
My Chicken farm example:
You run a chicken farm, and you need to buy a great many things to keep your farm and family going.
In a given month you need - for instance - to buy chicken feed, to hire someone to repair your generator, to buy a nailgun to allow you to mend chicken barn #9, to hire a midwife to help give birth to your daughter’s baby, to buy milk and bacon - and so on.
Some of these resources will be buyable with chickens or eggs. And some of them will not - there's no coincidence of wants if the midwife or the nailgun owner don't want chicken meat or eggs.
But all or most of these resources will be buyable with money - with Gold or Silver. Because offering money in a transaction vastly improves the chance of a coincidence of wants
My Chicken farm example - continued:
You’ve had a successful month at the farm, and you now have loads of chicken meat and/or eggs to sell.
100 people line up to buy what you’ve got.
* 50 of them have fiat money, food-stamps and a bad attitude
* 40 of them have plans for barter - some of which are better than others. One is willing to work on your farm for food: another is willing to sell you their body, another has a stack of AA duracell batteries, another has some miniature bottles of scotch - and so on, with dozens of variations. You have to gauge each transaction on its own merits - an exhausting process - and half of the barter offers are simply going to be unworkable.
* 10 of them have Gold and/or Silver.
Which customers will you prefer selling your produce to? They want what you've got - but do you want what they've got? Again: real money vastly increases the chance of a coincidence of wants.
Hope this was helpful.
It sounds good, but was more true when we had a gold-backed currency. With no basis of worth to back it up, currency is worth less than the paper it's printed on and using a metal due to it's rarity will not fill basic living needs if it gets to the barter scenario - who will be content with ammassing gold when they need food and clothing and tools, etc.?
I like your coincidence of wants. I think real money, silver and gold, needs to be accumulated in a large holding with small denominations. E.G. if you want a dozen eggs and a chicken to survive, you cannot present a numismatically rare gold piece with a current value of 100K or you have to take the whole chicken ranch. Then again, some of those cute little critters may still bring in some gold.
They use the gold and silver - the money - to buy food and tools and services.
Gold may indeed be too highly valued to use for most purposes. This is why the venerable institution of the money changer will return to our streets. Also: the high final value of Silver will bring back the trimetallic standard (Gold, Silver and some Copper alloy).
This being the modern day, we also have the possibility of developing swipe cards that allow the electronic reallocation of very small amounts of silver and/or gold from one owner to another. You just need a serial number for every milligram of gold and every gram of silver within an audited vault. This system already exists in embryo within (for instance) GoldMoney.com or BullionVault.com.
BTW check Kitco, Those EUROpeans are going nutz! The USD is up significantly! With the return to business tomorrow, I think the currency / gold traders in the US will move currency to gold and other baskets as there appears to be panic, or the beginnings thereof, by the numbers I saw. JMO
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