The recent silver market

[Brett]

Gold has not been a poor investment for the scammer gold dealers selling it.

yep

 

[Carolinian]

But why is the value of gold priced in a fiat currency? Why isn't it pegged to something that has inherent value?

Currencies used to be priced by the government in an amount of gold (and sometimes silver, too). Nixon did away with that for the dollar and most if not all other countries followed.

Now, the monetary metals, silver and gold, have an FX cross with all other currencies, the fiat variety, in the foreign exchange market. They all move against each other, up or down, in the FX market. One day, gold may be up more against the dollar than against the Swiss franc, but less against the euro, for example.

 

[TolmiePeak]

yep

View attachment 119645

Do all of the timeshare exit companies also run commercials there as well?

 

[TolmiePeak]

Currencies used to be priced by the government in an amount of gold (and sometimes silver, too). Nixon did away with that for the dollar and most if not all other countries followed.

Now, the monetary metals, silver and gold, have an FX cross with all other currencies, the fiat variety, in the foreign exchange market. They all move against each other, up or down, in the FX market. One day, gold may be up more against the dollar than against the Swiss franc, but less against the euro, for example.

Why not just eliminate the US dollar? It is a fiat currency. I would rather get paid in something that has inherent value.

 

[Brett]

Do all of the timeshare exit companies also run commercials there as well?

Likely ...

 

[Carolinian]

yep

View attachment 119645

Because people want to buy gold and silver. There is a major retailer that has also started selling gold, but I am not sure about silver, in their stores.

 

[ScoopKona]

But why is the value of gold priced in a fiat currency? Why isn't it pegged to something that has inherent value?

Because gold simply isn't worth very much.

Gold bugs, Austrian economics cultists, Art Bell and Murray Rothbard devotees and similar have a [censored rhyming with "card gone"] for precious metals. It's faith-based economics for zealots.

Here's a link to the rational wiki entry on this particular cult: https://rationalwiki.org/wiki/Austrian_school

 

[Carolinian]

Why not just eliminate the US dollar? It is a fiat currency. I would rather get paid in something that has inherent value.

Maybe that is why multiple US states have now issued Goldback currency, that has about half of its intrinsic value incorporated within the banknotes in gold leaf.

Inflation-Resistant Gold-Backed Currency | Goldback

Goldbacks offer an inflation-resistant, gold-backed currency for everyday use. Preserve wealth, hedge against inflation, and support local economies. Learn more!

www.goldback.com

 

[Carolinian]

Because gold simply isn't worth very much.

Gold bugs, Austrian economics cultists, Art Bell and Murray Rothbard devotees and similar have a [censored rhyming with "card gone"] for precious metals. It's faith-based economics for zealots.

Here's a link to the rational wiki entry on this particular cult: https://rationalwiki.org/wiki/Austrian_school

Ask the central bankers. Gold is an asset without counterparty risks. That is why for the last five years the world's central banks have been increasing their holdings of gold and decreasing their holdings of all fiat currencies - dollars, euros, yuan, yen, pounds, etc. Massive government debt IS a counterparty risk. But, hmmm!, maybe the central bankers are all into Austrian economics????? Think so, scoopy?

As to "rationalwiki" if it were honest it would change its name to Loony Left Wiki

 

[ScoopKona]

As to "rationalwiki" if it were honest it would change its name to LoonyLeftWiki

When your enemy is the flippin' rational wiki, time to re-evaluate your life choices.

I've been listening to this nonsense since USEnet. Sadly, there is nothing that's going to stop you using a timeshare forum to proselytize your economic religion. You're way too far gone. But just know that I've read your philosophy tens of thousands of times since before there was an Internet. And the von Mises zealots have never been able to defend their position against reality.

 

[Brett]

.

https://www.longtermtrends.com/stocks-vs-gold-comparison/

.

 

[Carolinian]

When your enemy is the flippin' rational wiki, time to re-evaluate your life choices.

I've been listening to this nonsense since USEnet. Sadly, there is nothing that's going to stop you using a timeshare forum to proselytize your economic religion. You're way too far gone. But just know that I've read your philosophy tens of thousands of times since before there was an Internet. And the von Mises zealots have never been able to defend their position against reality.

Those who consider the loony left position as the "rational" position should be reevaluating their life choices.

You think you are a lot smarter than the central bankers of the world who have been buying gold hand over fist for the last five years. In your own mind, maybe.

If you had paid attention to this information when you heard it earlier, you might have made some money, as I have.

You seem to have a fixation on von Mises, someone I have heard of but never read any of his stuff. Maybe I'll have to find one of his books, because if you put him down, he is probably a smart guy.

 

[Brett]

Those who consider the loony left position as the "rational" position should be reevaluating their life choices.

You think you are a lot smarter than the central bankers of the world who have been buying gold hand over fist for the last five years. In your own mind, maybe.

If you had paid attention to this information when you heard it earlier, you might have made some money, as I have.

You seem to have a fixation on von Mises, someone I have heard of but never read any of his stuff. Maybe I'll have to find one of his books, because if you put him down, he is probably a smart guy.

I have also made some money - - but not with gold coins

.

.

 

[ScoopKona]

Those who consider the loony left position as the "rational" position should be reevaluating their life choices.

The rational wiki also has plenty to say about new-age mystic crystal healing medicines, Gynneth Paltrow, most religions, and Rainbow Push.

It's neither left nor right, it is simply anti-faith, pro-evidence. The PETA weirdos and Scientologists call it a loony-right website. And the von Mises weirdos call it a loony-left website. It's just an anti-cult website. Cultists hate that.

Have fun with your praxeological deduction!

 

[TolmiePeak]

Maybe that is why multiple US states have now issued Goldback currency, that has about half of its intrinsic value incorporated within the banknotes in gold leaf.

Inflation-Resistant Gold-Backed Currency | Goldback

Goldbacks offer an inflation-resistant, gold-backed currency for everyday use. Preserve wealth, hedge against inflation, and support local economies. Learn more!

www.goldback.com

How can it have an intrinsic value when gold has no intrinsic value?

 

[billymach4]

How the heck does bitcoin hold any value?

 

[billymach4]

How the heck does bitcoin hold any value?

BTW this is a rhetorical statement. I understand how it holds value. But it is all theoretical and virtual value based on a loosely held belief and trust amongst people. At least gold is shining and physical. Been sought after for thousands of years. When the lights go out how are the crypto needs going to trade their coin?

 

[Carolinian]

The rational wiki also has plenty to say about new-age mystic crystal healing medicines, Gynneth Paltrow, most religions, and Rainbow Push.

It's neither left nor right, it is simply anti-faith, pro-evidence. The PETA weirdos and Scientologists call it a loony-right website. And the von Mises weirdos call it a loony-left website. It's just an anti-cult website. Cultists hate that.

Have fun with your praxeological deduction!

The term "loony left" was coined by Margaret Thatcher, but in reviewing that Orwellian named "rational wiki" site, it seemed to fit. Flipping through it revealed one left wing position after another. As to cults, it is all in on the UN's climate cult. Novelist Michael Crichton wrote an interesting essay on global warming as a religion. Some call it climate scientology. A rational observer would tell you that the science is mixed on that subject but one side childishly claims to have a "consensus" but then refuses to debate the other side. (Ironically, it was Margaret Thatcher's government that decided an old fringe climate theory from the 1890s would be useful in her battles with the coal miners union and the Arab oil sheiks in the 1970s and used government money to revive the almost forgotten CO2 global warming theory)

 

[Carolinian]

How can it have an intrinsic value when gold has no intrinsic value?

Talk to a central banker. You might learn something.

 

[Carolinian]

Since you are going to parrot the same chart ad infinitum , I guess I'll have to show my response ad infinitum:

.

That has always been Brett's MO. You have hit the nail on the head. And he will keep repeating it, over and over and over.

You are quite right as your charts illustrate. When government debt was modest, gold did not move too much. It was when government debt, in much of the world, started to get out of control, that central banks started buying gold by the ton and prices started moving. The key to what happens in the future is whether governments will get debt under control again. That does not appear likely. I got some good inside info on what central banks were thinking back in 2020, so I got in at a very opportune time. I had some stocks then but sold them. It has been a good ride so far with gold and silver.

Actually, prior to 2010, central banks had been net sellers of gold for some years. Gordon Brown when he was the UK's Chancellor of the Exchequer sold half of their gold to buy euros when the euro came out, for example. Since 2010, sentiment shifted and the central banks have been net buyers of gold since, and this kicked into high gear beginning in 2020.

 

[Carolinian]

Because gold simply isn't worth very much.

Gold bugs, Austrian economics cultists, Art Bell and Murray Rothbard devotees and similar have a [censored rhyming with "card gone"] for precious metals. It's faith-based economics for zealots.

There is a name for the economic theory you seem to follow but it is the actual faith-based economics. Its advocates call it "Modern Monetary Theory" and it basically says that a country can rack up all the debt it wants and print all the paper money (or electronic money) it wants, and there will be no adverse results. Past economic history indicates that is not likely to be true, but its followers in many world governments keep whistling past the graveyard. At least the central bankers are paying attention, and that is why they are buying gold by the ton and driving up the price for everybody else.

 

[ScoopKona]

Yes. You're clearly "five deep in the Kool-Aid."

 

[Carolinian]

Yes. You're clearly "five deep in the Kool-Aid."

I would say that Margaret Thatcher was thinking of people like you when she coined that term I mentioned.

 

[easyrider]

But why is the value of gold priced in a fiat currency? Why isn't it pegged to something that has inherent value?

Fiat currencies are what every country commonly uses for trade is why gold is priced in fiat currencies. Modern economic policies incorporate Keynesian economics which needs the flexibility of fiat currency. A country can't print gold to increase the money supply.

Gold is a stand alone type item regarding inherent or intrinsic value because it is rare and has a long history of being used as a store of wealth.

Bill

 

[TolmiePeak]

Talk to a central banker. You might learn something.

You mean the ones lowering interest rates destroying the value of the US dollar?