Gold replacing the dollar
As world reserve currency. You know that gold and food are not going up in value. It’s the dollar is going down. Things aren’t getting more expensive, your dollar is just getting cheaper.
14 Responses to “Gold replacing the dollar”
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March 30th, 2011 at 9:50 am
The dollar is going down, but not as fast as gold (and more so, silver) has been going up. Last I heard, I think the dollar was on about a 4% decline (dont hold me to that) and gold is up approx 25% over the last year (and that’s with poor recent performance). Silver has doubled.
The problem with the dollar is that they are creating a bubble. Its bad whenever it outpaces 3% inflation, but with the way they are printing money its gonna get really bad down the road.
I’ve said it before, gold is a commodity just like anything else. When the dollar is bad, commodities are good. Gold might not be the best commodity bet, but its a smart play against a weakening dollar.
Just dont get all caught up in the hype you see on TV. If you want to invest in Gold, dont buy gold bars and hide em under your mattress… buy publicly traded funds that you can easily liquidate and get full value for.
*BTW – go back and look at what the dollar and gold did during the Carter years… How many times has it been said that Obama is Carter 2.0?
March 30th, 2011 at 10:23 am
All of the gold in the world can fit into two olympic-sized swimming pools and only has value because it is shiny. Don’t give me any bullshit about industrial uses and its scarcity. Value is imagined. I can’t wait until the corvee comes back. Oh, wait it is coming back.
http://demcad.blogspot.com/2011/03/serfdom-america-unemployed-seek-unpaid.html
March 30th, 2011 at 11:47 am
It has value because it is shiny, and because it does not oxidize like most common metals do, and thus has unique properties that are key in production of electronics, medical items and yes, jewelry.
And until all of the other 7 billion or so people on this planet say that it is worthless, i think that it will be worth something 😉
March 30th, 2011 at 12:21 pm
>only has value because it is shiny
As opposed to US dollars, which have value because?? Made of high quality paper? Engraved pictures of dead guys?
I will say that gold has an intrinsic value + a speculative premium (assumption it will be worth more tomorrow) and that equals a speculative bubble, you know just like real estate has had.
That doesn’t mean I wouldn’t have done real well by putting my IRA into 100% gold 10 years ago, but if I had done that now, I’d be diversifying a bit right now (maybe into canned goods and ammo)
March 30th, 2011 at 12:33 pm
People have been urging investment in gold for a long, long time. So, people put gold in their portfolios, which means trading against gold as a future commodity, rather than investment in any actual gold. That gold may or may not actually exist.
Smarter people will buy actual gold with which to trade, but the entry price is insane. Most people cannot afford to buy gold as a retirement program. Silver is a much better choice for the average consumer – not because it’s ‘better’ per se, but because holding something in your hand is better than holding a paper saying you may own shares in gold that don’t even exist.
March 30th, 2011 at 1:51 pm
When the dollar is fully replaced as the world reserve, shit is going to get ugly. And its coming. And it is going to happen quick.
Silver is a good alternative to gold that is still affordable.
March 30th, 2011 at 3:01 pm
What gunmart said.
(Also, food prices really are up a bit worldwide – “the dollar” can’t be blamed for crop failures and the like.)
Actual gold is worthless in the extremity, as is silver, frankly.
(Silver less so, but even then – there’s simply not enough of it held widely enough to be of any use.
And in a REAL collapse, it will be worthless, since there won’t be anyone valuing it; precious metals are good as an inflation hedge or against a short-term crisis. In a longer-lasting one, they’re just useless shiny blocks of metal.)
(Remember that gold’s “intrinsic value” (technically “use value”, since nothing at all has real intrinsic value) is actually very low – doubly so in case of a real economic collapse, when the industrial uses will simply stop.)
March 30th, 2011 at 5:46 pm
I’m not against gold. But there was a secretive “x” in the equation for a thousand years or so: a bottomless-pit market in the the hinterlands of China and India. That pit has not filled, but is waning because the peasants who longed for it are going urbane, purchasing shiny autos and such. Don’t invest in those.
Should [any government they happen to have in] China decide to seize and/or dump all the gold they can, there would be a storm to weather. So I’m saying there’s no future in ytterbium futures, either.
There’s bunches of gold in the US. Try to figure out why it’s all mined by Canadians.
March 30th, 2011 at 6:57 pm
Many years ago, Tom Snyder had a guest on the Tomorrow show who spoke about the enduring value of gold. He said, “Tom, a hundred years ago you could ride into town with a $20 gold piece, buy yourself a first rate suit of clothes, and have enough left for a really nice dinner. Today, Tom, with that same $20 gold piece, you still could.”
March 30th, 2011 at 8:57 pm
Its true that there is no intrinsic value in precious metals. There wasn’t 2000 years ago either, but people preferred to carry around some gold and silver coins for trade rather than chickens and goats.
There is less need for precious metals NOW than there was then because paper currency is even more convenient than those gold and silver coins, yet they still have great value.
There is no certainty that the metal will be worth anything should the dollar collapse, but it is probably about the safest bet there is. You can store precious metals for a 1000 years….try that with chickens and goats.
March 31st, 2011 at 12:15 am
I prefer to invest in one metal: Lead, preferably in 150 grain units, moving about 2700-2800 fps. That will get me through the Upcoming Collapse until things stabilize and Cold and Silver will be brought out of hiding and put to use on Market Day. Also might not be a bad idea to stash some Luxury goods such as Coffee, Liquor, Penicillin, Gasoline, Toilet Paper……
March 31st, 2011 at 9:54 am
It is a finite resource of limited productive value and is valued in currency. It does not and cannot value currency in a capitalist system because it is limited in its ability to be accumulated.
March 31st, 2011 at 10:32 am
Buy your gold where Ayn Rand bought hers.
Blanchard, New Orleans.
[Sorry. Could not resist.]
March 31st, 2011 at 6:03 pm
I’m a recreational prospector. You’d be surprised where gold can be found. Not in great quantities, but it’s still GOLD. The largest majority of gold is very fine, small particles, difficult to recover. Gold & Work have a lot in common.