CIGA Posted March 1, 2011 Report Share Posted March 1, 2011 over the past few days 2 people i know and have known for a while (not close friends) have recommended buying gold and wish they bought some sooner. Stage 3... slowly but surely as with all secular Bull Markets in the history of time.. is coming. Link to comment Share on other sites More sharing options...
zebbedee Posted March 1, 2011 Report Share Posted March 1, 2011 And no-one has mentioned gold setting a new record high today, Tsch Tsch Link to comment Share on other sites More sharing options...
Schaublin Posted March 1, 2011 Report Share Posted March 1, 2011 And no-one has mentioned gold setting a new record high today, Tsch Tsch Starting to be irrelevant really. Who would want to swap an ounce of gold for a doomed currency at any number? Link to comment Share on other sites More sharing options...
G0ldfinger Posted March 1, 2011 Author Report Share Posted March 1, 2011 And no-one has mentioned gold setting a new record high today, Tsch Tsch Wake me up at $1,650. Link to comment Share on other sites More sharing options...
fitkid Posted March 1, 2011 Report Share Posted March 1, 2011 Starting to be irrelevant really. Who would want to swap an ounce of gold for a doomed currency at any number? I can think of quite a few on this very forum. I had to post it twice as i quite couldnt believe it myself. Link to comment Share on other sites More sharing options...
fitkid Posted March 1, 2011 Report Share Posted March 1, 2011 Wake me up at $1,650. Dont fall to deeply asleep then it wont be long. If you fancied 'HIBERNATION' you should have have said wake me up at <$1100. I mean realy what an earth were they thinking................uuummmm oh of course they were'nt thinking. Link to comment Share on other sites More sharing options...
fitkid Posted March 1, 2011 Report Share Posted March 1, 2011 over the past few days 2 people i know and have known for a while (not close friends) have recommended buying gold and wish they bought some sooner. Stage 3... slowly but surely as with all secular Bull Markets in the history of time.. is coming. 'GROUP THINK' That damn thing gets you every time. :lol: Link to comment Share on other sites More sharing options...
DoctorSolar Posted March 1, 2011 Report Share Posted March 1, 2011 And no-one has mentioned gold setting a new record high today, Tsch Tsch I guess a lot of folks on here count in pounds sterling so are awaiting a close above £914... but in any case the lack of excitement is a very bullish indicator IMHO... Link to comment Share on other sites More sharing options...
fitkid Posted March 1, 2011 Report Share Posted March 1, 2011 I guess a lot of folks on here count in pounds sterling so are awaiting a close above £914... but in any case the lack of excitement is a very bullish indicator IMHO... Lack of excitement i think is the wrong term. TOTAL DISBELIEF that with unprecedented events happening all around the world in both the 'NATURAL' and their 'ARTIFICIAL COMMERCIAL CONSTRUCT' has only just lead to a slight blip upwards to a new high is a joke. PPT/MANIPULATION i take my hat of to you.You are the dogs BO**OX Link to comment Share on other sites More sharing options...
fitkid Posted March 1, 2011 Report Share Posted March 1, 2011 I guess a lot of folks on here count in pounds sterling so are awaiting a close above £914... but in any case the lack of excitement is a very bullish indicator IMHO... Lack of excitement i think is the wrong term. TOTAL DISBELIEF that with unprecedented events happening all around the world in both the 'NATURAL' and their 'ARTIFICIAL COMMERCIAL CONSTRUCT' has only just lead to a slight blip upwards to a new high is a joke. PPT/MANIPULATION i take my hat of to you.You are the dogs BO**OX Link to comment Share on other sites More sharing options...
BertieBee Posted March 1, 2011 Report Share Posted March 1, 2011 It's going mainstream. Bernanke Unfazed By Gold Standard, Currency History Queries http://online.wsj.com/article/BT-CO-20110301-714533.html Link to comment Share on other sites More sharing options...
warpig Posted March 1, 2011 Report Share Posted March 1, 2011 I agree. the lack of excitement is a very bullish indicator IMHO... Link to comment Share on other sites More sharing options...
electroweak Posted March 1, 2011 Report Share Posted March 1, 2011 It's going mainstream. Bernanke Unfazed By Gold Standard, Currency History Queries http://online.wsj.com/article/BT-CO-20110301-714533.html Great article! What a PLONKER.... no... it's just the current price of gold is too low, stupid! You can support any size of money supply with any amount of gold, it's just the price which has to vary. http://online.wsj.com/article/BT-CO-20110301-714533.html WASHINGTON (Dow Jones)--Federal Reserve Chairman Ben Bernanke defended the central bank's effect on the dollar Tuesday, pushing back at the idea that policy makers should consider alternative proposals like the gold standard. Bernanke, appearing before the Senate Banking Committee, was pressed by Sen. Jim DeMint (R., S.C.) on the viability of a return to a gold-backed economy or the idea of the Treasury Department issuing bonds payable in gold. Bernanke, who has studied the issue, said a return to the gold standard wouldn't work. "It did deliver price stability over very long periods of time, but over shorter periods of time it caused wide swings in prices related to changes in demand or supply of gold. So I don't think it's a panacea," Bernanke told DeMint. Additionally, Bernanke said there were a number of practical issues that would prevent the return of gold as the world standard. Namely, there's not enough gold in the world to effectively support the U.S. money supply. "I don't think that a full-fledged gold standard would be practical at this point," Bernanke said, declining to opine on the gold-backed bond issue because he was not familiar with the idea. Link to comment Share on other sites More sharing options...
aliveandkicking Posted March 2, 2011 Report Share Posted March 2, 2011 Great article! What a PLONKER.... no... it's just the current price of gold is too low, stupid! You can support any size of money supply with any amount of gold, it's just the price which has to vary. But who decides the price? If the price is too high when you take your money out of a bank you only get a small amount of gold but get the benefit of more money when you put the gold in the bank. So i am assuming therefore that gold has to have a market value versus other objects for this system to work? So presumably you would have a natural relationship between the value of a jumbo jet and some gold. If Gold became very very valueable just because it was used as money it would be no different to paper that is valueable just because it has a strip of metal and a hologram on it or whatever they use today. Have any of the gold bug community thought this through to show it is a workable system? Maybe Bernanke is right? There are now so many items of value in the world today that when other items of value are created and the amount of money flowing around is related to the amount of wealth in the world that there would have to be more gold for the system to work? For example if billions of people become wealthier and move from the possession of almost nothing beyond a knife and a tent to having a car and home it seems you need more money in the world but would this mean that you get deflation in the rest of the world that was not becoming wealthier as all of their money dissapeared?? You tell me if you have thought about it in depth before. Link to comment Share on other sites More sharing options...
electroweak Posted March 2, 2011 Report Share Posted March 2, 2011 But who decides the price? If the price is too high when you take your money out of a bank you only get a small amount of gold but get the benefit of more money when you put the gold in the bank. So i am assuming therefore that gold has to have a market value versus other objects for this system to work? Price is not the point under a gold standard. The 'price' is decided by how many dollars are in circulation and how much of them you want to back with gold. Gold is money. So presumably you would have a natural relationship between the value of a jumbo jet and some gold. If Gold became very very valueable just because it was used as money it would be no different to paper that is valueable just because it has a strip of metal and a hologram on it or whatever they use today. Not a natural relationship btw gold and jumbo jet: a jumbo might have better fuel economy or different instruments all costing more or less gold. Have any of the gold bug community thought this through to show it is a workable system? Maybe Bernanke is right? There are now so many items of value in the world today that when other items of value are created and the amount of money flowing around is related to the amount of wealth in the world that there would have to be more gold for the system to work? For example if billions of people become wealthier and move from the possession of almost nothing beyond a knife and a tent to having a car and home it seems you need more money in the world but would this mean that you get deflation in the rest of the world that was not becoming wealthier as all of their money dissapeared?? You tell me if you have thought about it in depth before. There are so many dollars in the world today that if just the External Debt were to be backed by gold 100%, it would mean the 'price' of gold would have to be approx. $50,000 an ounce, iirc. Link to comment Share on other sites More sharing options...
lyb Posted March 2, 2011 Report Share Posted March 2, 2011 Rule If silver shall break away to new many-year high's, then gold shall break away to new all time high as well, and vice versa. Link to comment Share on other sites More sharing options...
G0ldfinger Posted March 2, 2011 Author Report Share Posted March 2, 2011 Hey Pixel, what's next now that we broke the line? http://gold.approximity.com/gold-silver_watch.html Link to comment Share on other sites More sharing options...
aliveandkicking Posted March 2, 2011 Report Share Posted March 2, 2011 Price is not the point under a gold standard. The 'price' is decided by how many dollars are in circulation and how much of them you want to back with gold. Gold is money. Not a natural relationship btw gold and jumbo jet: a jumbo might have better fuel economy or different instruments all costing more or less gold. There are so many dollars in the world today that if just the External Debt were to be backed by gold 100%, it would mean the 'price' of gold would have to be approx. $50,000 an ounce, iirc. I get the impression you could not understand what i was saying. We all know there are perhaps hundreds of different versions of a jumbo jet but if we take one jumbo jet it has a value to humans and a price that is relative to the value of gold. Gold today is 1400 an ounze because there are more dollars today and more people today than 40 years ago. If you artificially raise the price of gold then the price of everything is relative to gold and artificially raised in price. Instead of relying on what somebody has told you about what the price of gold will be under a gold standard how about you think about it yourself? If people think the price of gold is too high they are likely to trust banks that for example use platinum or copper to back their money because they will know the gold standard bank can pay them out in base gold money that is of little value compared to what they buy with the banks credit money. Paper money that is transferable to another banks system would also be more valueable than the gold. If you took gold of little value to another bank they could easily refuse to create the credits you want to buy platinum. Gold will have to have a natural price which the market creates. For gold to be supremely valueable it will have to have supreme value to humans. But today humans have other supremely valueable objects also. Link to comment Share on other sites More sharing options...
jsr Posted March 2, 2011 Report Share Posted March 2, 2011 De ja vu ... Again! Link to comment Share on other sites More sharing options...
cassini Posted March 2, 2011 Report Share Posted March 2, 2011 I get the impression you could not understand what i was saying. We all know there are perhaps hundreds of different versions of a jumbo jet but if we take one jumbo jet it has a value to humans and a price that is relative to the value of gold. Gold today is 1400 an ounze because there are more dollars today and more people today than 40 years ago. If you artificially raise the price of gold then the price of everything is relative to gold and artificially raised in price. Instead of relying on what somebody has told you about what the price of gold will be under a gold standard how about you think about it yourself? If people think the price of gold is too high they are likely to trust banks that for example use platinum or copper to back their money because they will know the gold standard bank can pay them out in base gold money that is of little value compared to what they buy with the banks credit money. Paper money that is transferable to another banks system would also be more valueable than the gold. If you took gold of little value to another bank they could easily refuse to create the credits you want to buy platinum. Gold will have to have a natural price which the market creates. For gold to be supremely valueable it will have to have supreme value to humans. But today humans have other supremely valueable objects also. I don't quite understand your point - are you saying that gold has some kind of intrinsic value that limits its use as money above a certain valuation? The intrinsic value of gold, whatever that is, has nothing to do with it. A paper dollar has no intrinsic value at all yet is accepted as money. Why do not people swap their valueless paper dollars, which you can't eat etc etc for some paper that is less expensive and overvalued...? Gold functions as money because it is durable, very difficult to fake, rare and hence unprintable except generally the supply increases from mines ~2.5%/annum, also it is divisible and all gold refined to the same standard is identical. These properties all make for a suitability for money. Diamonds are rare and expensive plus difficult to fake but are not divisible and all are slightly different from each other - not good as money. Gold would, if used as a 100% backing for the money supply, take on the value dictated by the amount of currency in the system, be that M2 or whatever, without reference to any value dictated by the cost of digging it out of the ground. I don't expect it would form a 100% backing so I don't expect it to rise to $50,000 but we're not so far off 10% of that for a fractional gold system. You could swap your paper for gold should you so wish, it may keep the pollies and bankers a little more hamstrung than they are now as they would need a minimum amount of gold to cover requests for specie instead of paper (De Gaulle requested payment from the US in gold instead of dollars in the late 60's as it became clear the dollar was overvalued relative to gold. Of course Nixon had to stop that so he 'closed the gold window'). Link to comment Share on other sites More sharing options...
aliveandkicking Posted March 2, 2011 Report Share Posted March 2, 2011 I don't quite understand your point - are you saying that gold has some kind of intrinsic value that limits its use as money above a certain valuation? The intrinsic value of gold, whatever that is, has nothing to do with it. A paper dollar has no intrinsic value at all yet is accepted as money. Why do not people swap their valueless paper dollars, which you can't eat etc etc for some paper that is less expensive and overvalued...? Gold functions as money because it is durable, very difficult to fake, rare and hence unprintable except generally the supply increases from mines ~2.5%/annum, also it is divisible and all gold refined to the same standard is identical. These properties all make for a suitability for money. Diamonds are rare and expensive plus difficult to fake but are not divisible and all are slightly different from each other - not good as money. Gold would, if used as a 100% backing for the money supply, take on the value dictated by the amount of currency in the system, be that M2 or whatever, without reference to any value dictated by the cost of digging it out of the ground. I don't expect it would form a 100% backing so I don't expect it to rise to $50,000 but we're not so far off 10% of that for a fractional gold system. You could swap your paper for gold should you so wish, it may keep the pollies and bankers a little more hamstrung than they are now as they would need a minimum amount of gold to cover requests for specie instead of paper (De Gaulle requested payment from the US in gold instead of dollars in the late 60's as it became clear the dollar was overvalued relative to gold. Of course Nixon had to stop that so he 'closed the gold window'). I am saying, in the gold standard all items are priced relative to the price of Gold where the price of gold is related to the perception by humans of the value of Gold. Therefore if you artificially alter the price of gold you artificially alter the price of everything. Why do not people swap their valueless paper dollars, which you can't eat etc etc for some paper that is less expensive and overvalued...? Does that have a typo? Gold standard credit money is essentially the same as fiat credit money. Both rely on the bank having sound accounts and functioning in a sound regulation system. In both systems people can hold gold if they wish. The only difference is with a gold standard you hope to get metal from your bank rather than hoping to get metal from your metal dealer. Link to comment Share on other sites More sharing options...
electroweak Posted March 2, 2011 Report Share Posted March 2, 2011 I am saying, in the gold standard all items are priced relative to the price of Gold where the price of gold is related to the perception by humans of the value of Gold. Therefore if you artificially alter the price of gold you artificially alter the price of everything. In the gold standard all items are priced IN GOLD. The "price" of gold is then dictated by how many $$$ there are. If you allow Gold to back $$$, then yes, you artificially alter the ability of everyone who owns gold to buy other things. I.e. most gold holders get a massive increase in their purchasing power in terms of "ounces for stuff". Never mind if you don't have any though. Link to comment Share on other sites More sharing options...
Schaublin Posted March 2, 2011 Report Share Posted March 2, 2011 I am saying, in the gold standard all items are priced relative to the price of Gold where the price of gold is related to the perception by humans of the value of Gold. Therefore if you artificially alter the price of gold you artificially alter the price of everything. Correct, that is why the slippery beach ball (gold) that has been held under water for many years and is slipping through the fingers of a dying Empire, is a good buy. Glad you understand at last Link to comment Share on other sites More sharing options...
aliveandkicking Posted March 2, 2011 Report Share Posted March 2, 2011 In the gold standard all items are priced IN GOLD. The "price" of gold is then dictated by how many $$$ there are. If you allow Gold to back $$$, then yes, you artificially alter the ability of everyone who owns gold to buy other things. I.e. most gold holders get a massive increase in their purchasing power in terms of "ounces for stuff". Never mind if you don't have any though. You seem to be mixing things up? When was the last time in history a major country priced bread in gold?? In the west that must be hundreds of years ago Link to comment Share on other sites More sharing options...
aliveandkicking Posted March 2, 2011 Report Share Posted March 2, 2011 Correct, that is why the slippery beach ball (gold) that has been held under water for many years and is slipping through the fingers of a dying Empire, is a good buy. Glad you understand at last Gold is just stuff. It has no magic powers. There is plenty of desirable stuff. Link to comment Share on other sites More sharing options...
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