Gold and Deflation

American Enterprrise Institute for Public Policy Research ^ | January 2003 | John H. Makin

[arete]

Here are the links to the silver commentary that I promised you the other day.

SILVER REVIEW AND OUTLOOK

All Roads Lead to the COMEX

Silver is a good substitute for gold right now.

Richard W.

[arete]

Looks like we're becoming old farts...

Isn't that the truth. Of course, maybe we are just wiser now.

Richard W.

[Soren]

I try to read everything Sinclair writes. I think he is very generous with his time in a way that goes beyond his own self-interest. I see $400+ gold in 2003, but I think $840 is a stretch for 2003 unless there is something to the short squeeze theory that Murphy et al keep pushing. I do think we are in the early stages of a shift in the dollar's global role. By the time that shift is over, it would not surprise me to see $1000+ gold.

Regarding registering gold bullion: doesn't sound right to me either, but I have not purchased bullion, only coins. I have never seen any reference to a requirement to register gold bullion.

[arete]

I love it when the chart looks like this.

Richard W.

[rohry]

"Regarding registering gold bullion: doesn't sound right to me either, but I have not purchased bullion, only coins."

I have bought x kilos of gold and have never "registered" anything...

[imawit]

Okay you old farts. Has anyone looked into the advantage of using your age to dump large quantities into a retirement and beat taxes. A la borrow against the value/equity, perhaps a trust fund for the heirs.

This may be more legal than financial but it's the same game.

[rohry]

"Okay you old farts...Has anyone looked into the advantage of using your age to dump large quantities into a retirement and beat taxes."

No, I'm not old enough to have looked into this...

Maybe Arete can help you, LOL!

[arete]

No, I'm not old enough to have looked into this...

Neither am I.

Richard W.

[imawit]

OH ! Now I'm the only old fart here ?

[arete]

Here is a link to an audio link interview with Bill Murphy.

Bill Murphy Interview With Jim Puplava

Richard W.

[dennisw]

http://www.freerepublic.com/focus/news/826256/posts

[razorback-bert]

Where do I go to register my tenth of a gram gold ingot?

[razorback-bert]

I had a site bookmarked, but windows in its' wisdom decided to delete them all.

Yes, I have them backed up, but haven't put my hands on the correct CD.

There was a link on e-bay gold coins.

I was buying graded gold coins for the price of gold a few years ago on e-bay and used it and the red book.

[arete]

Hey guys, here is a little calculator that lets you figure out how much the dollar has inflated over time. Have fun.

Inflation Calculator

Richard W.

[Tauzero]

Nick's comment isn't stupid rohry, and I'll try to answer it.

Gold can spike upwards during a liquidity crisis, because it acquires additional value as money. When you can't get the state's money out of the bank -- and nobody else can either -- you use your precious metals, if you got 'em.

This is happening right now to a very minor degree Japan. Bank finances are shaky, the 100% bank deposit guarantee has been revoked, and so the Japanese are buying more gold.

You can bet FDR wasn't doing gold owners a favor when he commanded them to sell to the government at the government's price. A fair market price to convince them to voluntarily part with all of their gold would've been much higher.

[jwh_Denver]

OH ! Now I'm the only old fart here ?

LOL! Nope, bud, I'll join you! I'M AN OLD FART! Really nasty ones lately too!

[jwh_Denver]

Thanks for the ping on this interview. I've always thought that if you felt down and out about gold read what Bill Murphy has to say. Not that what he's said hasn't happened because it has. It just took a little time that's all.

[dtel]

Is that you, brother?

Aye,
It is I,
Your other brother, 'Darryl'.

[dtel]

I punched in a thousand dollars from '76 to '01.

What cost $1000 in 1976 would cost $3165.66 in 2001. Also, if you were to buy exactly the same products in 2001 and 1976,
they would cost you $1000 and $315.89 respectively.

I used that figure because that it the princely sum I was making as a motorcycle mechanic/shop manager. $6.25 per hour. (This was an entry level wage for a highly talented kid right out of high school.) ;^)
For the job to have kept up with inflation it would now pay $19.69 per hour. Or from 12K a year to 37.8K.

Inflation sux. Wages never keep up.

[Wyatt's Torch]

Speaking of inflation, I don't think the Fed let's it get too far above $385-$400. Now that they have "apparently" (and I say that with extreme reservation) gotten it on the deflation wreckage they brought us over the last 5 years, and reflated gold to it's historical average, I think that they will continue with this path.

Of course, they could have just stumbled across the necessary fix and not know how they caused it...;-)