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NY gold loses most in 15 years (what was that again about the dollar being worthless?)

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posted on Jun, 29 2006 @ 03:08 AM
Gold is its own Currency, and can be traded internationally.

There are indicators to the Price of Gold, the most bullish is when the price decouples from major world paper currencies. this occured several months ago.

Gold dropped 15 % in price after a very large runup in price. Think about how many institutions and syndicates would need to buy gold to force it to double in price the last 5 years. They are not short term investors, they hold long term for spectacular gains.

Paper and Gold are not the same thing. Paper is backed by the government and pure blind faith, which is why its been losing purchasing power the last 25 years.

Gold is its own currency and can be used as transfer currency, collateral, international capital.

think of Gold in this manner, a good mens suit cost 20.00-30.00 100 years ago in the USA, which was the price of an ounce of Gold. Today a good mens suit costs the same as an ounce of Gold.
Gold maintains purchasing power over time. People the world over keep Gold as a hedge against loss in of purchasing.

posted on Jul, 2 2006 @ 02:20 PM

What backs up our currency is better than gold. It is the wealth, power, stability, and talent of the wealthiest, most stable, and surely the most powerful nation in the history of the earth.
—Dr. Rick Boettger

Most of the greatest episodes of economic history—from the commercial revolution to the industrial revolution—occurred in the midst of rising prices and rising debts.
—George Gilder, Wealth & Poverty, p.243

The purpose of [tax rate] cuts, it must be continually stressed, is to expand the tax base—to make the rich pay more taxes by inducing them to consume less and work more. If deficits arise as an initial result, no one should panic.
—George Gilder, Wealth & Poverty, p.239

The last quote is just a gratuitous shout-out for tax cuts, which are ALWAYS a good thing.

Fiat money is, admittedly, a non-intuitive notion. When you hold a dollar you have access to and can participate in history's most stable currency and most dynamic and productive economy.

Gold on the other hand, never grows and people learn to become more efficient in its uses. Many countries hold lots of it and there lots of it sitting in the ground waiting to be mined when the price is right.

The recent run-up in gold and oil was merely a retreat from fiat money because of world instability (namely Iran). If you had bought gold in the early 80's. You would only know have your head above water when adjusted for inflation.

Meanwhile in 1979 the Dow was 700, Friday (6/30) it closed at 11150 and increase of more than a factor of 10.

I'll stick with stocks.

posted on Jul, 2 2006 @ 02:43 PM
Let me put it like this:
If I go to the bar and a beer cost 3 dollars, a month later I go to the bar and that same beer is 6 dollars, what happen? Its still the same exact beer as last month. Production is the same, shipping is the same, and profit is the same. The dollar is just worth less. Its not worth more. When you have to carry a wheelbarrel of money to buy an once of gold, how long before that wheelbarrel only buys a loaf of bread?

When I see prices rise, I see the dollar in a bad light. when my milk stops costing 3 dollars a gallon I might start having faith in the dollar. Gold doesn't change, and thats the BEST part about gold. No matter what happens, that ounce of gold equals this amount. The gold doesn't lose or gain value, it is the value. One once of gold is always going to be worth one once of gold. The product never changes, just the dollar. If you buy things in gold, there will be no real inflation for the product so long as the means of producing the product doesn't increase and the materials don't run out (causing the price to rise by supply and demand).

So the dollar to me is not stable. Gold is the most stable currency in the world, plain and simple.

posted on Jul, 2 2006 @ 08:35 PM
Many of you have forgotten silver. Silver is much cheaper right now, which people will try and buy if there are problems in the economy which will shoot it right up. Not to mention silver is actually more rare than gold is on the surface of Earth. Also it conducts electricity much better than gold. Many wealthy people I know are investing in silver, but I on the other hand buy the silver and store it. Gold & Silver are good to have.

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