Mr/Ms? FuzzFace,
An oz of gold bought a very good suit 400 years ago. It buys a okay suit today. Your inflation discussion should take into account this fact. Inflation arguments must always be tempered by lifestyle changes. For instance, 300 years ago, the average person probably lived on a farm or primitive settlement, and was far more self sufficient. These days, many live off restaurant or prepared food, live in cities, and pay ridiculous rents or property prices, and are dependent on others for many things. What is inflation, and what is socioeconomic and lifestyle change? I don't think the average government inflation measurement takes into account any of this.
Barricks hedging program is based on the fact that gold spikes occur over narrow time intervals, but generally the price goes down or sideways most years. Those are not my words, but Barrick's, and they have the proof in graphs and analysis,.. perhaps you should talk to them directly to confirm the 30 year thing.
The statement that "now it is different" is a statement in much ill repute lately. Gold trade is a very small fraction of world total trade, or even currency trade,...less than 1%, even if you take into account the illegal trade which may be the problem with Gata's ASSumptions of gold supply and demand. Illegal supply of gold is the big unknown,...and I'm not talking about from Fort Knox (ggggggggggg)
20 years ago, the arguments for gold going up were the same as now,...but it collapsed from US$800,...too much supply is hidden and unknown. To much supply can be found by digging. Too much supply in bank vaults.
My quote is mine "Gold is a rich person's bauble, a psychotic's vice, a criminal's currency, and a store of wealth to the uneducated, unmotivated or unprivileged" The average person has no use for gold.
I do not disdain goldbugs,...that makes no sense. There are techno bugs, bank bugs, biotech bugs, cyclic bugs, real estate bugs, etc., etc. I watch you all, watch the market, and take advantage of the swings. I am a jumping bug (gggggggggggggggg) |
