[borntodiefree]

I am a gold bug, and here to stay. My 1 oz Gold coin was worth $20.00 in the 1920s/30s. With either my gold coin or my fiat federal reserve note (debt), I could buy a really nice suit.

Today, that same Gold coin will buy me a really nice suit, but that $20.00 federal reserve token will barely get me a set of cufflinks.

I don't use my gold to "make" money, I use my gold to maintain my money.

When all the shorts in all the banks are called in someday (when the IMF can no longer manipulate the Gold and Silver market), the dollar will likely drop through the floor, and Gold and silver will still have their value in the euro, suit, food, whatever. It really hasn't truely lost value in the last 6000 years. I'm in no hurry to believe it will start now.

Gold and Silver are still just assets which values go up and down a bit, like a bag of rice, a saw, whatever, but over the long haul its value remains fairly constant.

[Looking for Diogenes]

Today, that same Gold coin will buy me a really nice suit,...

Where can you get a 'really nice suit' for $314? Walmart?

[Lazamataz]

I am a gold bug, and here to stay. My 1 oz Gold coin was worth $20.00 in the 1920s/30s. With either my gold coin or my fiat federal reserve note (debt), I could buy a really nice suit. Today, that same Gold coin will buy me a really nice suit, but that $20.00 federal reserve token will barely get me a set of cufflinks.

Wrong unit of measure, but I understand how you might make the error:

In the 1920's or 1930's, you could buy a decent suit for about 50 hours of unskilled labor. ($0.40 an hour * 50 hours = 20$). Now, you can buy a decent suit for about 38 hours of unskilled labor ($9.00 an hour for 38 hours = 350$).

Dollar amounts are meaningless unless you take into account inflation of wages as well as inflation of prices.

[surely_you_jest]

Where do you buy your really nice suits? Because I want to go there. I am clearly being way overcharged.

[arthurus]

Gold is more than just an asset. You cannot eat it , you cant make lawn mowers out of it, etc., but it is the commodity that, because it has been used as The Money for 5000 years or so, will continue to be so used so long as there is such a thing as markets. Gold retains its characteristic because governments cannot screw with it. They can play games with the cvalue of the fiat money but they cvannot change gold. They can attempt to mask gold by clipping and dilution (in the days of circulating gold money) or by modern tricks of paper but dilution was always detected instantly and the value of the debased coin adjusted to reflect the debasement. Paper tricks have the same effect, debasement of fiat money.

Silver is not so reliable because the industrial uses are far greater than the monetary uses and because silver enters the system in more erratic amounts. The addition of gold has been quite steady over the millenia. Silver can also be "lost" in that it combines readily with other elements to form other substances.

[lds23]

You know the best way to make a suit jacket last?

Make the pants first!

[SamAdams76]

I am a gold bug, and here to stay. My 1 oz Gold coin was worth $20.00 in the 1920s/30s. With either my gold coin or my fiat federal reserve note (debt), I could buy a really nice suit. Today, that same Gold coin will buy me a really nice suit, but that $20.00 federal reserve token will barely get me a set of cufflinks.

I think your logic is a little flawed.

In 1920, the average income was around $15 a week or just $780 a year. If you wanted one of those $20 gold coins, you would need more than a week's salary to get one.

Today, the average income is $30,000 a year (or $600 a week). You would only have to work about half a week to get that same ounce of gold.

If you invested in blue-chip stocks in 1920, you would have far more wealth today than had you invested in gold only. Even considering the Great Depression that would occur during the 1930s.

Of course, gold is not a bad investment as part of a "diversified" portfolio. But it is greatly overrated as an investment.

[First_Salute]

Bump.

[Rodney King]

I am a gold bug, and here to stay. My 1 oz Gold coin was worth $20.00 in the 1920s/30s. With either my gold coin or my fiat federal reserve note (debt), I could buy a really nice suit. Today, that same Gold coin will buy me a really nice suit, but that $20.00 federal reserve token will barely get me a set of cufflinks. I don't use my gold to "make" money, I use my gold to maintain my money.

I can't believe you wrote that. Your twenty dollar token, if put in the bank, would be worth more now then your gold. In fact, if you had a lot of gold, you would pay out a lot of money in storage.

[ozzymandus]

Well, yeah, but suppose you had put that $20 in an FDIC insured savings account? Or bought $20 worth of GM stock?