posted on Apr, 18 2011 @ 06:00 PM
reply to post by redgreen
No economist me. But as I understand the beginnings of the monetary system it was based on minerals, like you point out. The scarcity of them was what
made people think that they had value. Barter was very inefficient. The early bankers from what I've read were the blacksmiths, who worked in metal
and hence were the logical people to find barter with, metal for goods. But this was limiting. Paper came into the equation as notes of promise. Joe
had x amount of gold with the smith, and rather than getting the gold to pay for the cow, he just wrote a note to the smith which he gave to the Bob
for the cow and then Bob could go to the smith for the gold. Better.
You are right that the dollar is tanking and that gold and silver are rising in value. But from my perspective, this is not that gold or silver have
value it's just that people are looking for something that is more solid than paper.
I remember the beanie babies. Gettem cheap at McDonalds with your burger cheap. People were buying them left and right because they we were told that
they were collector items. Buyem cheap and one day twenty years later they would have a greater value. In a sense, people were abandoning their cash (
to a degree ) and using beenie babies as a medium of exchange. They would even trade them to round out collections for greater value in the future.
Phony baloney. But a lot of poor people bought into it because they were going to be RARE at some time in the future. Now? Gettem for a nickle at
I think the same with gold and silver. Like beenie babies they have little intrinsic value, sure they are good for this and that but not to the extent
which they are rising in price.
So for me, buying gold and silver are merely short term investments at this point. Ten years ago, good investment, but now? I dunno. Others will say
oh yeah oh yeah.
Back to the video though. Doom and gloom =gold and silver go up. So I am leery of those who tell me doom and gloom, and by the way do you want to buy
gold and silver.