Posted on 07/30/2014 5:56:17 PM PDT by blam
07/30/2014
Ron Paul
“I Still Believe In Gold” - Ron PaulDr Ron Paul, the popular Presidential candidate and America and the world's most popular libertarian voice, told CNBC yesterday that he “still believes in gold” and that “gold could go to infinity.”
Former U.S. Representative Dr Ron Paul told CNBC's Jackie DeAngelis and the Futures Now Traders that the long-term case for gold remains firmly intact.Dr Ron Paul: “Timing is the only thing. I remember watching gold when it was 35 dollars an ounce and we thought if it ever hit a hundred dollars, the world would come to an end. And then a thousand dollars, so; no, it's good as long as we continues to do this , you know, it could go to infinity because when people just leave the dollar, who knows what …”“But that won't happen if we finally wake up and do something. But if we can keep this together, if the money managers can keep it together and it doesn't collapse, yes, gold is gonna keep creeping up, but, you know, as weak as gold looks right now, it's up a hundred dollars for this year so…”
Jackie DeAngelis:
“It's roughly I think up 8% year-to-date. It's not a horrible move for gold but I think a lot of people were expecting to see a little bit more, especially with the instability that we're seeing in terms of the geopolitical situation. A lot of conflict around the world -- you'd expect gold to be higher right now.”
(snip)
(Excerpt) Read more at zerohedge.com ...
Monkeys could fly out of my butt.
“Gold will not go to infinity.”
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If the dollar is totally ruined and no one will sell gold for any amount of dollars is that not “going to infinity?”
If not, what would you call it? I’m just asking.
Go back 100 years,a new rifle cost an ounce of gold. Today about the same cost.
Tracks for hay, grain, eggs, etc.m and that can be examined back as far as you can get data.
If not, what would you call it? I’m just asking.
If the owners of every ounce of gold will not trade any of it for anything, the price of gold will be infinite.
But that ain't going to happen.
It's like the Earth-centric view of the Solar System. It's just as valid as any other. You are free to take this here Earth and plant a large flag into it that says "Center of the Solar System here, call before you dig."
Unfortunately, if you do so then the math that defines positions of every other planet, planetoid, rock, and dust in the Solar System becomes pretty convoluted. You'd have to accept that their orbits are not relatively simple ellipses around the Sun, but complicated wiggly lines around the Earth.
But that's the only difference, really. It's like, when on a road trip, instead of using the odometer in your car you observe log the vector of acceleration, and then painstakingly calculate which exit you are close to. It's possible, but it's not very practical.
The same happens with gold and the labor. The labor is the most basic reference of value. Gold tracks that reasonably well. (This can change if we release hordes of gold-mining robots, but nobody so far has an interest in doing that.)
But instead of using that labor and that gold as references, we use an arbitrary paper as unit of value - despite the fact that the paper is not backed by anything, and is printed in huge amounts daily. You'd be better off valuing stuff in gallons of milk or bales of hay.
If it goes to infinity, then all anyone needs is a fraction of a gram and they would be infinitely wealthy.
“Gold will not go to infinity.”
As others have pointed out, Gold has been remarkably stable in terms of its actual value when viewed in terms of other commodities.
The question isn’t what Gold will go to, it’s what the dollar will sink to. A dollar used to be worth 1/35th of an ounce of Gold. At one point it was worth 1/2000 of an ounce.
Did you hear that Janet Yellen last week authorized the creation of 35 billion dollars worth of physical Gold out of thin air? No, you didn’t.
“If it goes to infinity, then all anyone needs is a fraction of a gram and they would be infinitely wealthy.”
Good luck trying to buy a fraction of a gram of gold with infinitely worthless dollars, no matter how many of them you have.
At some point, the gubmint will make it illegal to possess gold or use it for tender. Then what? Black market? The illegal and legal economies have to have a common conduit and if gold is illegal (on penalty of death), then gold becomes a liability and capital goods or trade items become the new gold.
Seems to me, anyway.
I suppose I should have said going to infinity in terms of the dollar. I think that is what Ron Paul meant.
True, but it ain’t there yet.
Currency is NOT money... never was..
Any that think it is... is delusional.. or ignorant..
An Oz could always buy you a good suit
I prefer silver. At 65 :1 the silver/gold ratio is more than a bit off and I think that will close a bit with silver going up and gold going down. Maybe
Bad math!
Julian Simon said that in the long run, adjusted for inflation, the price of any metal always goes down.
Yeah, I guess.
Wouldn’t it be simpler just to say the value of the dollar has gone to zero?
If the price of gold in dollars is infinity, that means the price of every other item for sale in a US dollar economy has also gone to infinity.
Anyway, my point was that Argentina bonds went into default today, and I would rather own gold than Argentina bonds.
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