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To: Toddsterpatriot; dollarbull
I tried to help you, but I guess I'll have to be more clear. Look up the definition of currency vs. money. Gold is money, it's not currently currency within the US. I'll hold gold as my money and so with other smart people. You can use fiat toilet paper as yours - let's see how they both do over the next 10 years?

Or we can go back a hundred years or so to when the fed was created. Let's see, gold was 20 dollars an ounce. Now it's ELEVEN HUNDRED dollars an ounce. Yep, the dollar has held up well against gold, huh?

Good thing the fed's on the job for us with those backed by nothing FRNs. Don't know what we'd do if we had to use that relic gold as currency.

130 posted on 11/14/2009 1:15:37 PM PST by Swing_Thought (The doorstep to the temple of wisdom is a knowledge of our own ignorance. - Benjamin Franklin)
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To: Swing_Thought; Toddsterpatriot; dollarbull
Yo Todd, we got a money definition problem here and maybe you can explain this better than I can.

Most people say money is a  and a medium of exchange, unit of account, and a store of value. 

Dollarbull and Swing_Thought know gold isn't a medium of exchange because they never use it to buy anything.  OK, they might trade it for something, but  baseball cards work too and they aren't money.  Gold can't be a unit of account either; if say, dollarbull said his house was worth 100 ounces of gold this past year then we wouldn't know if it was worth $76k or $114k.  

Dollarbull says is "I'll hold gold as my money" --as if it were a store of value.   My dear sweet mother-in-law (rest her soul) 'stored' about a hundred grand in gold when it peaked at $880/oz in 1980.   In 1980 the DOW was at 800 but I digress...

Ping me if you have any luck.

132 posted on 11/14/2009 2:31:56 PM PST by expat_panama
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To: Swing_Thought
Let's see, gold was 20 dollars an ounce. Now it's ELEVEN HUNDRED dollars an ounce.

Wow! 6% return a year.

Yep, the dollar has held up well against gold, huh?

Who holds dollars long term?

Don't know what we'd do if we had to use that relic gold as currency.

Yeah, crushing deflation is so much fun. LOL!

133 posted on 11/14/2009 3:10:58 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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