The USD doesn't have a habit of crashing a la 1980. Gold is a lot more volatile, more people need USD then people need gold. There's lots of things you can do with USD, what do you do with gold, put it in the safe and take out some insurance in case it gets stolen?
Gold has, for thousands of years, proven to be a store of value.
The same can't be said for the USD which has lost 95% of it's purchasing power since the 1930's and I don't see it reversing that (long term) trend.
Gold has, for thousands of years, proven to be a store of value.
The same can't be said for the USD which has lost 95% of it's purchasing power since the 1930's and I don't see it reversing that (long term) trend.
The same worn out old story. I wonder if the punters that gambled on gold in 1979 would agree with you as they went bust and lost everything they had? The USD is on its way back, but I'm always open to ideas, so prove to me the USD has lost 95% of its value (against what) since the '30's and then we'll have a look at other currencies and then gold (which is not a currency).
.... so prove to me the USD has lost 95% of its value (against what) since the '30's and then we'll have a look at other currencies and then gold (which is not a currency).
Well something has to happen because if you're right then it's only got 5% to go and then the USD has lost 100% of its value and is worth nothing, which is obviously incorrect.
The USD is worth nothing like it was in 1774, so it has depreciated, but it's also depreciated against property and the DJIA. The USD has generally kept its value against other currencies.
Gold keeps pace with inflation, if you're expecting any more than that you're going to be sadly disappointed in the long run.
Quite a good article Skol. Looks like China's wages are increasing steadily in line with the gold price, and they are also big buyers of gold. But some of us on the thread had commented about that. I just hadn't seen a chart showing the very strong link of the gold price to per capita annual income in China and India. It is at about USD$2750 at the moment. The point is that this link is even more conclusive than the link of gold to oil or energy. So we should keep an eye on how things are going in China. Let's hope they keep growing their economy.
The USD is worth nothing like it was in 1774...to right it isn't.......Well the current USD has only been around for 38yrs ...
In 1971, gold was repriced to $38 per ounce, then again to $42 per ounce in 1973. As the dollar devalued, it motivated people to sell their greenbacks for gold. Finally, in late 1973, the U.S. government decoupled the value of the dollar from gold altogether. The price of gold quickly shot up to $120 per ounce in the free market.
Once the gold standard was dropped, countries began printing more of their own currency. Inflation usually resulted, but for the most part abandoning the gold standard created more economic growth.
However, gold has never lost its appeal as a currency of real value. Whenever recessions or inflation looms, investors return to gold. By 2011, the price of gold was over $1,600 an ounce.
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
However, gold has never lost its appeal as a currency of real value.
Gold is not a currency, it may have been hundreds of years ago but not now. If you'd like confirmation, next time your Mrs. goes to Woolworths give her a krugerrand to pay for the groceries.
Gold is not a currency, it may have been hundreds of years ago but not now. If you'd like confirmation, next time your Mrs. goes to Woolworths give her a krugerrand to pay for the groceries.
No different that trying to pay in any other currency try paying for your groceries in yen or USD not going be any good either is it...but like the gold coin you can take it to a local mint an exchange it for an currency of your choice ..as you can with USD yen to your currency exchange .
.... anyone that thinks the current fiat monetry system isn't in dire trouble needs to W>T>F up
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
No different that trying to pay in any other currency try paying for your groceries in yen or USD not going be any good either is it...but like the gold coin you can take it to a local mint an exchange it for an currency of your choice ..as you can with USD yen to your currency exchange .
.... anyone that thinks the current fiat monetry system isn't in dire trouble needs to W>T>F up
I can't go to the local bank or currency exchange and get local currency for gold.
Originally Posted by Skol
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