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 Replies: 80 / Views: 6,446 |
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Rest in Peace
United States
9104 Posts |
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Valued Member
United States
410 Posts |
It is a valid point. Gold has no inherent value, it is only valuable because people agree that it has value.
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Pillar of the Community
United States
1143 Posts |
 She spent some time figuring this out True gold has only an inherent value but its easier to store than bushels of grain. As long as we can agree on some medium to barter with then the world works. But the idea that gold must be backed is humorous to me. Edited by cointagous
10/04/2011 3:27 pm
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Moderator
 United States
187702 Posts |
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Pillar of the Community
1028 Posts |
People agree that it has value because we acknowledge it has rarity and demand.
Give the gal a break, she probably had 5 minutes to prepare to go on the air and needed something to say. She doesn't know what she's talking about, but most people don't if you consider the entire population. What she said, although irrelevant, isn't technically incorrect anyways.
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Pillar of the Community
Netherlands
626 Posts |
@ JSH -
As is everything else in life.
"History is the lie people commonly agree upon" - Voltaire -
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Pillar of the Community
United States
4989 Posts |
Gold is incredibly speculative at these levels. You basically have a metal that has been worth about $300-$500, inflation adjusted, for centuries now trading at a 400% premium. Should we trust centuries worth of data that say Gold has an intrinsic value of $400 or a few years of manic market speculation that says it is worth $1600?
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Valued Member
United States
228 Posts |
JSH: Sorry - this reporter has a point of view - but it is far from valid!  Gold has been recognized as a storehouse of real value for thousands of years, and will remain so - long after this reporter is pushing up daises. It is FRN's (Federal Reserve Notes), that have value (though not intrinsic value), only because people believe it does. The main reason people believe that US currency, (or any other fiat currency for that matter), has value - is because governments all over the world mandate that it does. It says right on the note, "valid for all debts, public and private". Without government edict that paper is money - it would not be recognized as such. You have it exactly backwards! Like the nursery rhyme: "Old McDonald went to town, riding on a pony, stuck a feather in his hat and called it macaroni" You can call a FRN , money or currency, a feather, or even macaroni if you like - doesn't change the reality. Fiat currency is paper. Gold & Silver are money! |
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Pillar of the Community
United States
2120 Posts |
***Image Removed by the Staff. Remember to keep it family friendly, including the initialisms.***
Gold has value because you can't just make more of it from nothing.
The US dollar (fiat) is worthless because tomorrow we can print $10,000,000,000 more if we want to.
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Pillar of the Community
United States
3670 Posts |
I may have a rock in my backyard that is one of a kind, but because it is just a rock, it is worthless.... Humans noticed the decorative and currency factor of gold, thousands of years before any of us were even thought of.... Therefore it has always had value, and it always will.... Don't even get me started on Ancient Aliens, lol.... https://goccf.com/t/94315 |
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Pillar of the Community
United States
2120 Posts |
Quote:
Should we trust centuries worth of data that say Gold has an intrinsic value of $400 or a few years of manic market speculation that says it is worth $1600? Ill trust the years of senseless printing of money and inflation, that now takes $1600 to represent what used to be $400. I remember when Milk was about $1.5-$2 a gallon, now its closer to $4.50. |
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Pillar of the Community
Canada
1502 Posts |
@Fenton Quote:
You basically have a metal that has been worth about $300-$500, inflation adjusted, for centuries now.. It ain't gold that lost its value, more the other way around like ianmprice stated Quote:
now takes $1600 to represent what used to be $400 There is no gold bubble, it's a debt bubble |
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Pillar of the Community
United States
4989 Posts |
The inflation adjustment already compensates for increases in money supply. There was TONS of fiat money printed between 1900 and 2000 yet, despite that, Gold's inflation adjusted value in 2000 was not much different than 1900. Today, however, the story is quite different. We are in a bubble similar to what happened in 1980. You can see this clearly on an historical chart that adjusts for inflation. Anyone buying Gold at these levels under the perception that they are buying a safe asset class is misguided -- comparable to buying the NASDAQ in 1999. http://inflationdata.com/inflation/...on_chart.htm |
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Pillar of the Community
United States
3670 Posts |
Well Fenton, gold looked like it was gonna blow back past 1700 late last night, but I see today another 40 dollar nose dive....
You may be right short term, but gold in the long term is a safe investment IMO, as I believe silver to be as well....
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Pillar of the Community
Canada
1502 Posts |
@Fenton I can't find an 1980s graph for US debt but this one has me sold that gold is not moving independently of debt and the debt ceiling  |
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Pillar of the Community
United States
2269 Posts |
Gold coins have been around for over 2000 years verses paper money which has been in existence for a few hundred years. Which would you trust?
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Replies: 80 / Views: 6,446 |
Posted 10/04/2011 3:24 pm
