The true colour of money is gold. Let me say that here gold represents a variable that represents anything of intrinsic value. The reason is that is what gold historically is. A fix quantity of gold now will buy the same as it would at any time in the past. A fixed quantity of gold has intrinsic value to humans which is why gold is true money. Unfortunately no fixed amount of money is correct for the economy all the time and sometimes it will be necessary to increase the money supply by adding silver. You could start with anything of a fixed amount actually and add or subtract anything else of a fixed amount as necessary and maintain a stable currency. Yak dun has been used in remote areas of the Himalayas. The point is fixed amount. Why? Because inflation is not prices going up, it is the value of money going down. It's the same simple formula, prices = a function of supply and demand. The more money in circulation the less the value of each unit(dollar). See Ron Paul School Ben Bernanke.
http://youtube.com/watch?v=yAwvlDJgJbM&feature=related
We will enter the metals market after a pull back. Some symbols to consider GDX, SLW, and PAAS.
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Ron Paul is right. Inflation is theft.
"A fix quantity of gold now will buy the same as it would at any time in the past." ---- is this really true?
Gold is a worldwide-accepted commodity. Silver is too, along with platinum and diamonds. Good trading tools. Gold will continue to go up. However, how much more gold can we extract? It’s almost like oil. We will run out of it. What will we do when we will not be able to increase the circulating amounts of gold?
I would argue that even the dollar, including the currently falling dollar, has intrinsic value to humans. As humanity evolves, intrinsic values also evolve. Evolution implies changes and adaptability. Only the fittest will survive during the upcoming great depression. Is fitness related to owning gold? I think adaptability and creativity will be much more valuable than gold. You can have as much gold as you want; if the power plants are not running, the night is going to be dark anyway (unless of course there is moonlight).
Anonymous
I am trying to find my exact source, but roughly it's this. For a certain quantity of gold a Roman centurion could buy a uniform. This would consist of a shirt,belt,knife or short sword with sheath and sandals. As of 1995 a businessman could buy a suit with that same amount of gold. What that exact amount is I will find for you, but here is where I got it. THE MONEY MASTERS How International Bankers Gained Control of America. See the link.
http://video.google.com/videoplay?docid=-515319560256183936&q=moneymasters+gold&total=10&start=0&num=10&so=0&type=search&plindex=0.
This is a 3 hr history of the world that they don't teach in school. Until I saw this video and read "The Creature from Jekyll Island " by G Edward Griffin I could not know what we are up against. Paradoxically the ruling elites are nearly all powerful, but easily beatable if we can just get the word out. There will be more on this.
Anonoymous see yesterdays post on "peak gold". "A Sure Thing"
To TONY: Thank you for your note. I am very interested in finding out more. According to what you say, “for a certain quantity of gold a Roman centurion could buy a uniform. This would consist of a shirt,belt,knife or short sword with sheath and sandals. As of 1995 a businessman could buy a suit with that same amount of gold” and it looks like this information comes from the money masters people (by the way, thanks for the link, I’ll take a look at it). However, such an argument does not convince me at all. How can you compare a shirt, belt, knife/sword (which I guess where made up of some sort of fabric and leather, in addition to metals for the weapons) with a modern age suit? The raw materials are totally different, and my guess is that at the Romans time a lot of effort had to go in producing metals for weapons, and then forging the weapons. The raw material for a suit is of a different nature, and the suit itself is much more easier to produce. And then, are you using the price of a Wal-Mart suit or a designer suit. You can go from a 100 $ suit to a 5000 $ suit. And then, which one is the country that they are considering? The US? As presented by the money masters people, this argument has a lot of holes and needs to be reassessed. Is there any way to contact them to see if they can clarify it?
Ambivalent
The dollar is fiat currency so it does not have intrinsic value. It is forced upon us. Not all fiat currency is bad, but our is debt based. Gold is a kind of "place keeper" of intrisinct values over time. My wording
I agree gold is not THE solution to everything. Can't eat it or sleep in it or defand yourself with it. In the end we have to redeem our gold(silver) for things of tangiable vaule. Will it be US dollars? Doubt it.
The Money Masters contains very good points. However, it is a movie, and movies are movies for a reason. So there is no point in using time to ponder over roman centurion uniforms versus modern day suits. The comparison is just eye-catching, and it has been chosen to catch the viewer attention. It just looks nice and interesting. A roman centurion walking along a US businessman. War attire versus business attire. For sure, out troops in Iraq do not wear suits. May be they should be given centurion uniforms.
I doubt gold has intrinsic value – it has given value, historically maintained for centuries. We are all attached to it. We all dream of it. We are emotionally bound to it. It provides safety, or at least the idea of safety. If everything goes wrong, and I still have gold, I might be spared. Gold can in theory be replaced by anything else in trading, and it has been widely replaced. Gold is like having a shelter for nukes. Gold is shiny – there is a reason it is used for jewelry – it makes you shine. And, right now, for the many people full of fear and uncertainty about the future, it does provide shine in the total darkness. Please forgive my rhetoric, I am a full-time novel writer, and I am enjoying reading this page. I find your investment comments very helpful.
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