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Why the gold bugs are wrong

O

ObamacareForever

Senator
Where does Gold derive it value from? It value comes from people who say it does. Same as paper money. Gold has no actual utility, you can't eat it, you can't drink it, you can't burn it, it's highly impractical to build with it. If The dollar collapses, I will not be trading food and water for what is essential a shiney paper weight.
 
ObamacareForever said:
Where does Gold derive it value from? It value comes from people who say it does. Same as paper money. Gold has no actual utility, you can't eat it, you can't drink it, you can't burn it, it's highly impractical to build with it. If The dollar collapses, I will not be trading food and water for what is essential a shiney paper weight.
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It does have industrial applications which have in fact increased its market value. But qua money, you are absolutely right. It has certain characteristics (rare but not too rare, physically stable, malleable, dense, easily identifiable) that make it a practical choice for money in the absence of a working fiat system (which is why it is still valued and will indeed be valuable when the dollar collapses). And the expense (which is labor not spent feeding people, etc.) of producing it can serve as a check on reckless inflation of the money supply if legal tender can be redeemed for gold. But it is no more "truly" money than paper money, bitcoin, or anything else.
 
EatTheRich said:
It does have industrial applications which have in fact increased its market value. But qua money, you are absolutely right. It has certain characteristics (rare but not too rare, physically stable, malleable, dense, easily identifiable) that make it a practical choice for money in the absence of a working fiat system (which is why it is still valued and will indeed be valuable when the dollar collapses). And the expense (which is labor not spent feeding people, etc.) of producing it can serve as a check on reckless inflation of the money supply if legal tender can be redeemed for gold. But it is no more "truly" money than paper money, bitcoin, or anything else.
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I doubt the Gold bugs learned very much, with the Gold price dropping. I couldn't believe how many were buying 1 oz ingots, when the price was so high, when I knew their value was simply in the melt; which is why I invest in Gold coins, because they will always have a value above the melt. Melt values do little to change the value of Gold minted coins.
 
Wahbooz said:
I doubt the Gold bugs learned very much, with the Gold price dropping. I couldn't believe how many were buying 1 oz ingots, when the price was so high, when I knew their value was simply in the melt; which is why I invest in Gold coins, because they will always have a value above the melt. Melt values do little to change the value of Gold minted coins.
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gold was the money of kings.
salt was the money of the people.
debt is the money of lawyers.
capital is the money of central banks.

capital just got more expensive...

MW-EB405_fed_ra_MG_20151216140814.jpg
 
Days said:
Depends... how many gold coins do you own?
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I'll never tell, that just asks for trouble.

If I had been a wise king, I would have bought Silver Eagles and Gold Eagles by the roll while prices were low. Before Bush Silver Eagles could have been had for as little ans $120 a roll, and as high as $250 a roll. During Bush's economy the value of Silver Eagles rose to as much as $1,000 a roll. But I didn't see any real intrinsic value in them, nor the gold Eagles.
 
Wahbooz said:
I'll never tell, that just asks for trouble.

If I had been a wise king, I would have bought Silver Eagles and Gold Eagles by the roll while prices were low. Before Bush Silver Eagles could have been had for as little ans $120 a roll, and as high as $250 a roll. During Bush's economy the value of Silver Eagles rose to as much as $1,000 a roll. But I didn't see any real intrinsic value in them, nor the gold Eagles.
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back when gold was $450/oz I was telling everyone in moneybox; buy gold. The reason? Not because people believe in gold, but because it is all the banks have for a foundation, all paper money is created as a testament to gold. I knew the banks would horde the gold. When gold hit $2000/oz and started to drop, it was time to cash in. What did it drop to? $1070/oz? Today I would tell you to hold onto those coins, they will be going right back up before long.
 
Days said:
back when gold was $450/oz I was telling everyone in moneybox; buy gold. The reason? Not because people believe in gold, but because it is all the banks have for a foundation, all paper money is created as a testament to gold. I knew the banks would horde the gold. When gold hit $2000/oz and started to drop, it was time to cash in. What did it drop to? $1070/oz? Today I would tell you to hold onto those coins, they will be going right back up before long.
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The plan in rare coins is to buy low, sell high. The only silver dollars that rise and fall, based on the value of Silver is well circulated dollars. Mint State coins, whether Morgans, Walking Liberty Halves, Peace Dollars, and the rest, is based on market demand.

Spot Gold is $1069 right now, but St. Gaudens have lost very little compared to the generic Gold.
 
Wahbooz said:
The plan in rare coins is to buy low, sell high. The only silver dollars that rise and fall, based on the value of Silver is well circulated dollars. Mint State coins, whether Morgans, Walking Liberty Halves, Peace Dollars, and the rest, is based on market demand.

Spot Gold is $1069 right now, but St. Gaudens have lost very little compared to the generic Gold.
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SO YOUR GOLD COINS ARE GOLD PLATED, NOT SOLID GOLD?

If so, you are not a king, just another puppet ruler.
 
Days said:
SO YOUR GOLD COINS ARE GOLD PLATED, NOT SOLID GOLD?

If so, you are not a king, just another puppet ruler.
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Gold plated? Well I was tempted to buy a gangster nickel once, just for the halibut. They took a Liberty nickel and gold plated them, because they didn't say cents, and people mistook them for $5 gold pieces. A cute collectible.
 
Wahbooz said:
I have a safe, chests aren't very secure.
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disqualified! your kingship is removed.
kings leave their treasures laying about their dominion and nobody touches them because they fear the king!
I'm afraid you are but a puppet ruler after all.
 
Days said:
disqualified! your kingship is removed.
kings leave their treasures laying about their dominion and nobody touches them because they fear the king!
I'm afraid you are but a puppet ruler after all.
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Do you live in lala land, Days? Being Pharaoh never stopped anyone from stealing treasures.

Besides, chests are for pirates.
 
Wahbooz said:
Do you live in lala land, Days? Being Pharaoh never stopped anyone from stealing treasures.

Besides, chests are for pirates.
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You are taking all the fun out of this. Would if pirates buried their treasure in safes? How could treasure hunters ever hope to get away with a safe full of gold before the IRS showed up? The safe would weigh tons! You have to think about posterity, gold pieces need to be stored in a chest!

okay, I don you Pharaoh, but not king and not pirate, and everyone knows those 2 are funner.
 
Days said:
You are taking all the fun out of this. Would if pirates buried their treasure in safes? How could treasure hunters ever hope to get away with a safe full of gold before the IRS showed up? The safe would weigh tons! You have to think about posterity, gold pieces need to be stored in a chest!

okay, I don you Pharaoh, but not king and not pirate, and everyone knows those 2 are funner.
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That better be a sturdy chest, because when they pick it up the bottom is coming out. Pharaoh is fine, they had bigger monuments.

Besides, kings can get beheaded and pirates can be keelhauled.
 
Wahbooz said:
That better be a sturdy chest, because when they pick it up the bottom is coming out. Pharaoh is fine, they had bigger monuments.

Besides, kings can get beheaded and pirates can be keelhauled.
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You are so practical minded. A native American Pharaoh. wowzer!

okay, time to look at another aspect of gold, and this will blow your mind. I think you will find it interesting to see how crazy these people were who invaded this land. Wisconsin might as well be New Germany, and more settlers came to America from Germany than any other land. This is the story of the colors of Germany...


A look further back...

 
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ObamacareForever said:
Where does Gold derive it value from? It value comes from people who say it does. Same as paper money. Gold has no actual utility, you can't eat it, you can't drink it, you can't burn it, it's highly impractical to build with it. If The dollar collapses, I will not be trading food and water for what is essential a shiney paper weight.
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The value of gold is in its rareness.

It does have some industrial use.
http://geology.com/minerals/gold/uses-of-gold.shtml

And it makes more sense to me than using seashells. https://en.wikipedia.org/wiki/Shell_money


But silver, platinum, palladium, and copper makes sense too. Heck copper in old pennies is more valuable than a penny is today.
 
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