Comments on: The Chinese Silver Download Experience

By: Andrew Murray

Andrew Murray — Sun, 22 Nov 2009 22:59:43 +0000

Gold is the clear opposite of fiat currency.

So a devauling dollar necessarily leads to higher prices in commodities

By: But What Do I Know?

But What Do I Know? — Mon, 21 Sep 2009 12:57:42 +0000

Very thoughtful, Gregor, and very nice writing in paragraphs 3 and 4. The problem of storing wealth has been around since the beginning of civilization, and gold and silver were and are just another way of attempting to solve it. They are useless in the way the Oscar Wilde said that Art was quite Useless–they don't put food in our stomachs or roofs on our heads. But human psychology is ultimately what provides value to any good, so why should gold and silver be different?

God help us if money ever loses its motivational power–it is all the more reason to be careful in our experiments with fiat currency composed of electronic impulses.

By: But What Do I Know?

But What Do I Know? — Mon, 21 Sep 2009 09:57:42 +0000

God help us if money ever loses its motivational power–it is all the more reason to be careful in our experiments with fiat currency composed of electronic impulses.

By: Jeff Out West

Jeff Out West — Sun, 20 Sep 2009 18:14:51 +0000

An ounce of Gold buys a tailored suit?

A tailored suit costs closer to $2,000 and has for over a decade.

A $300 (Gold in 2000) suit ten years ago was not a custom made suit but most likely bottom rack at Pennys.

By: David F.

David F. — Sat, 19 Sep 2009 17:16:21 +0000

Jeff Out West – I feel your arguement is preposterous, if not just illogical. Should individual Chinese citizens begin to acquire precious metals en masse, it would create the greatest demand on gold that has ever been seen in history. With a basic premis being supply and demand determine price, the demand would begin to greatly outstrip supply (especially with today's ETFs and a worldwide cessation of governmental selling of the metals). This price will, in my opinion, explode to the upside once the public begins to awaken and realize that, why gold might be a simple piece of metal, that it far superior to your dollar or Euro, which is simply a piece of paper. Look a bit through history and try to find a single example of a currency not backed by gold or silver that has lasted more than 200 years. It is going to take you a long, long time because none exists. That being said, gold will only be worth $5,000 per ounce when oil costs $300 per barrell and a gallon of milk costs $30. Simply speaking, gold has held its value for the past 5,000 years. For hundreds of years one ounce of gold has been able to buy a hand tailored suit. I think that is true today, as always. It also tends towards a multiple of the cost of a barrel oil. I am not sure on this one, but I think that it tends towards 9 barrels. Thus, one way of looking at things is to suspect that gold should be dropping to ($70/barel x 9 = $630 per ounce), or that oil will move over $100 per barrel. However, nobody can foresee the future. The only thing I can guarantee is that gold and silver will still have value after we are long dead, that their value has never dropped to zero, and that paper currency of any nation can become worthless almost overnight (i.e. Zimbabwe, Italy, most of South America, Rome, Greece, etc. etc. etc.). In the words of a rather verbose editor states at the end of all of his newsletters, “Buy Gold – Whee, this investing stuff is easy.” gold@davidvfarrell.com

By: Jeff Out West

Jeff Out West — Fri, 18 Sep 2009 23:06:35 +0000

I'm curious to learn more about China and it's urging for the rank and file to buy gold & silver. If the state controls purchases by the public it could be a very effective means of “taxation” – Sell at $1,000 / redeem at $500. That too would dampen inflation! Without exports of gold it would have even greater control over the market.

Like our housing market bubble – an internal China gold bubble would be an effective way of transferring “wealth.” China issue Franklin mints to a culture obsessed with gambling -sounds like a bubble a state could control