romans holiday Posted February 5, 2010 Report Share Posted February 5, 2010 most of us are required to settle our debts in cash. If we have gold we sell gold to get cash Most of us dont see gold as money. instead it is what a person has if they have money. A person can have debt and money and gold. Upon settlement they might have only debt. In deflation more people are settling debt than getting new debt. Therefor the buying power of cash rises. What the banks have is irrelevant unless that is being spent. Maybe it was to get gold to go up. But now? Money [our cash] is essentially an institution of government. Gold will be re-instituted [a new gold backed currency] by governments in order to stabilize national currencies, guarantee the greater part of international debt, and preserve the global economy. When you look at it from an international governmental perspective, you can think of gold as money in that it will price/ stabilize/ fix national currencies. imo gold is now in the process of being informally monetized in the minds of investors/ CBs, and will eventually be formally remonetized to salvage and restore global trade. Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 Which is precisely why they will print like crazy, this action now is the markets asking for more printy. Anyone think we won't see another bailout? Anyone think the politicos in Washington are going to watch their power dribble away? Not a chance, I'll bet Ben and Timmy are arm twisting and scaring the numpties on capitol hill as we speak. I await the politicians response with trepidation. Washington has more power now because if washington does not act then we will all slide into deflation where debts will destroy businesses individuals communities friend and foe. My city house is going to look a bit silly here without heat and electric light and available food if the utilities and buisiness go bust. the USA remains the most powerful economy on earth. That is the reality. People here holding promises from gold money or bullion vault wont get a penny if they go bust or the bullion holders go bust The world is built on promises Also reality. All this talk that fiat is 'just promises' is kind of nuts given many of you are promised stuff from other people and you think you are in a better position than others Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 Central banks see gold as money, if you can't see that then it is because you don't want to. As far as i knew central banks still settle in gold via the bank of international settlements But most people on the planet dont see gold as money as far as i can see. Gold is instead like diamonds or pearls. Most people will not take gold as money because they are unable to know it is gold, just as people are unlikely to take a diamond or a pearl because they cannot know if it is genuine. It is an impractical money unless it is made into recognised coins that can easily be passed to another person. If you offer me gold and pay for my expenses to melt it down and have it tested we could probably trade however provided i took no risk for whatever happened to your gold while it was tested and i was still due payment regardless of the results of my test. Link to comment Share on other sites More sharing options...
warpig Posted February 5, 2010 Report Share Posted February 5, 2010 No one is suggesting buying a can of coke with a one ounce panda, why do you keep trying to smash this nut with an axe. There are mechanisms for converting gold to fiat currencies if you want to buy a can of coke, we know this! As far as i knew central banks still settle in gold via the bank of international settlements But most people on the planet dont see gold as money as far as i can see. Gold is instead like diamonds or pearls. Most people will not take gold as money because they are unable to know it is gold, just as people are unlikely to take a diamond or a pearl because they cannot know if it is genuine. It is an impractical money unless it is made into recognised coins that can easily be passed to another person. If you offer me gold and pay for my expenses to melt it down and have it tested we could probably trade however provided i took no risk for whatever happened to your gold while it was tested and i was still due payment regardless of the results of my test. Link to comment Share on other sites More sharing options...
electroweak Posted February 5, 2010 Report Share Posted February 5, 2010 No one is suggesting buying a can of coke with a one ounce panda, why do you keep trying to smash this nut with an axe. There are mechanisms for converting gold to fiat currencies if you want to buy a can of coke, we know this! It's even simpler if something like Goldmoney were to become widely used. One can transfer metal from one account to another in gold grams or silver ounces. This is the future of money IMO. It may take years, but this is (by popular demand) where it will go. Link to comment Share on other sites More sharing options...
Methinkshe Posted February 5, 2010 Report Share Posted February 5, 2010 As far as i knew central banks still settle in gold via the bank of international settlements But most people on the planet dont see gold as money as far as i can see. Gold is instead like diamonds or pearls. Most people will not take gold as money because they are unable to know it is gold, just as people are unlikely to take a diamond or a pearl because they cannot know if it is genuine. It is an impractical money unless it is made into recognised coins that can easily be passed to another person. If you offer me gold and pay for my expenses to melt it down and have it tested we could probably trade however provided i took no risk for whatever happened to your gold while it was tested and i was still due payment regardless of the results of my test. I watched a youtube video (can't remember what it was called or where I got the link from) about a reporter trying to sell to anyone on the street a 1oz Canadian Maple worth $1000. No one would take it - not even for $20! Link to comment Share on other sites More sharing options...
warpig Posted February 5, 2010 Report Share Posted February 5, 2010 That video was meaningless, I saw it too. I watched a youtube video (can't remember what it was called or where I got the link from) about a reporter trying to sell to anyone on the street a 1oz Canadian Maple worth $1000. No one would take it - not even for $20! Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 That video was meaningless, I saw it too. if it was faked using actors then it was without meaning Otherwise it means that gold is not easily recognisable to people, or is easily passed as real when fake or some such meaning Link to comment Share on other sites More sharing options...
grumpy-old-man Posted February 5, 2010 Report Share Posted February 5, 2010 I watched a youtube video (can't remember what it was called or where I got the link from) about a reporter trying to sell to anyone on the street a 1oz Canadian Maple worth $1000. No one would take it - not even for $20! & if a stranger came to you in a high street & stopped you & said you can buy this £50 for £5, would you ? & that's even when knowing/recognising the currency of course you wouldn't & neither would I. Link to comment Share on other sites More sharing options...
warpig Posted February 5, 2010 Report Share Posted February 5, 2010 Precisely. & if a stranger came to you in a high street & stopped you & said you can buy this £50 for £5, would you ? & that's even when knowing/recognising the currency of course you wouldn't & neither would I. Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 & if a stranger came to you in a high street & stopped you & said you can buy this £50 for £5, would you ? & that's even when knowing/recognising the currency of course you wouldn't & neither would I. Oil almost into the 60's. 50's and below here we come i think Link to comment Share on other sites More sharing options...
grumpy-old-man Posted February 5, 2010 Report Share Posted February 5, 2010 Oil almost into the 60's. 50's and below here we come i think oil will be $150 - $200 p/b by middle/end 2010 imo this is the short deflationary part of the current biflationary period Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 oil will be $150 - $200 p/b by middle/end 2010 imo this is the short deflationary part of the current biflationary period People dont need to use oil like they have been using it. Wood pellets or geothermal for heating is fairly common these days Anyway there is a recession and repayment of debt. Teenagers wont be running around in circles and dad wont lend the car with petrol in it. Twenty year olds cant afford car insurance Meanwhile the indebted oil rich countries have to pump regardless of the price and there is a surplus of oil Link to comment Share on other sites More sharing options...
grumpy-old-man Posted February 5, 2010 Report Share Posted February 5, 2010 People dont need to use oil like they have been using it. Wood pellets or geothermal for heating is fairly common these days Anyway there is a recession and repayment of debt. Teenagers wont be running around in circles and dad wont lend the car with petrol in it. Meanwhile the indebted oil rich countries have to pump regardless of the price and there is a surplus of oil we get to find out this year then don't we. don't forget we only need one 'event' or 'shock' & oil will spike edited - I agree with what you said though in your statement, but it's the 'event' that will dictate the price of oil, not the things you mention above. Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 we get to find out this year then don't we. don't forget we only need one 'event' or 'shock' & oil will spike The last thing the people running the world need right now is high oil prices. Link to comment Share on other sites More sharing options...
grumpy-old-man Posted February 5, 2010 Report Share Posted February 5, 2010 The last thing the people running the world need right now is high oil prices. that depends on what you think their agenda is, we think entirely differently on this iirc. Link to comment Share on other sites More sharing options...
aliveandkicking Posted February 5, 2010 Report Share Posted February 5, 2010 that depends on what you think their agenda is, we think entirely differently on this iirc. In case it escaped your attention, Iraq is now part of america and countries like finland italy france and new zealand have soldiers in afghanistan and japans tankers are supplying the forces at sea All this nonesense about the demise of the west is more or less psy ops for the benefit of the sheeple Link to comment Share on other sites More sharing options...
carbon junkie Posted February 5, 2010 Report Share Posted February 5, 2010 In case it escaped your attention, Iraq is now part of america :lol: You do come out with some classics, but sadly I know you actually believe it. Iraq is a sovereign nation - fact. Central banks hold gold because they believe it to be money - fact. I can't believe some of the stuff you come out with it simply defies belief it really does make me wonder. Mmmm....... Link to comment Share on other sites More sharing options...
grumpy-old-man Posted February 5, 2010 Report Share Posted February 5, 2010 In case it escaped your attention, Iraq is now part of america and countries like finland italy france and new zealand have soldiers in afghanistan and japans tankers are supplying the forces at sea All this nonesense about the demise of the west is more or less psy ops for the benefit of the sheeple when everyone is making lots of money then everyone is happy when certain people/countries stop making money or make bad investment decisions, friends quickly become enemies. edited Link to comment Share on other sites More sharing options...
fitkid Posted February 5, 2010 Report Share Posted February 5, 2010 Hyperinflation when it occurs is always very short lived - it is the final blow-out phase before the search for equilibrium results in an opposite move. And if the opposite move cannot be found then there is a self-destruct. Within an oscillation there is an up and a down move. Those that catch the up do well - unless they believe that the up will continue exponentially toward infinity. The trick is to ride the up and bale out before the reverse swing. The difficulty is to identify the tipping point. The only certainty is that the tipping point and consequent reversal WILL occur. I just think that gold has reached a tipping point and will reverse. Psychologically, which is the more immediate/greater fear in the mind of an investor? Immediate losses or losing out on potential gains? My bet is that the immediate fear of losses due to a large correction will cause its own positive feedback loop downwards until equilibrium is reattained. Why do you think Gold has reached a tipping point objective/subjective comments all appreciated.? Link to comment Share on other sites More sharing options...
jerpy Posted February 5, 2010 Report Share Posted February 5, 2010 The last thing the people running the world need right now is high oil prices. Unless your economy is based on Oil and you're influenced by oil companies with an agenda for higher oil prices. Link to comment Share on other sites More sharing options...
wren Posted February 5, 2010 Report Share Posted February 5, 2010 ... People here holding promises from gold money or bullion vault wont get a penny if they go bust or the bullion holders go bust ... At both GM and BV the customer is the legal owner of the bullion he has purchased. GM or BV could go bankrupt and the official receiver could not steal the bullion from the owners i.e. the customers. Both GM and BV have stated this clearly. It's a central part of the service they provide. Link to comment Share on other sites More sharing options...
wren Posted February 5, 2010 Report Share Posted February 5, 2010 It's even simpler if something like Goldmoney were to become widely used. One can transfer metal from one account to another in gold grams or silver ounces. This is the future of money IMO. It may take years, but this is (by popular demand) where it will go. Last month I won the gold-price guessing competition at 24knews. The prize was a one-ounce silver coin. I PM'd my GM account number to Pixel8r and he deposited one ounce of silver in my GM account from his GM account. It was the first time I received via that system and the transfer must have occurred within minutes. Link to comment Share on other sites More sharing options...
sylvester Posted February 5, 2010 Report Share Posted February 5, 2010 Last month I won the gold-price guessing competition at 24knews. The prize was a one-ounce silver coin. I PM'd my GM account number to Pixel8r and he deposited one ounce of silver in my GM account from his GM account. It was the first time I received via that system and the transfer must have occurred within minutes. I don't believe that the transfer would have happened so fast. Why don't you transfer that coin (or a gold one, it doesn't matter) into my account and I'll see how long it takes. Better still, send a few coins just in case any get lost on the way Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 5, 2010 Author Report Share Posted February 5, 2010 You gotta shake the weak hands out first. http://www.bloomberg.com/apps/news?pid=206...fYDcQ&pos=5 John Paulson Gold Fund Said to Tumble 14% in Its First Month Feb. 5 (Bloomberg) -- Hedge-fund billionaire John Paulson’s gold fund lost 14 percent in January, its first month of operation, two investors said. Link to comment Share on other sites More sharing options...
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