Gold is just another metal, subject to supply and demand from consumption and speculation. Any other value of gold is in the individual human's eye.
The true value of any currency or commodity should be measured in terms of its purchasing power in goods and services,...a purely human measure used as a measure of purely human endeavours. Gold's valuation in terms of purchasing power of human goods and services has fluctuated widely over the ages (like any commodity), and its purchasing power trendline is down, just like many fiat currencies.
There have been times in history where a lb of iron has been worth more than a lb of gold (a sword made of gold is pretty worthless in battle). Gold during some times of conflict has soared to real prices far above the 1980 peak levels in terms of purchasing power as the rich seek ways to move their wealth around. During the American Civil war, gold could be sold for well over US$100 per oz, and some of those little fiat pieces of paper from that war are now bought by collectors for far more than their equivalent value in gold then.
Making gold out to be some mythical metal with intrinsic value, and super powers, is a quick way to enter the poor house. Don't fall in love with your gold (remember heaven is paved with it), fall in love with your wife and your love of life,...it is far more profitable.
It is not necessary to have gold increase in value, to make lots of money with gold exploration companies. A better use of our time would be to investigate more gold companies, than to bother trotting out the old tired arguments of fiat vs gold that have circulating endlessly since before any of you were gleams in your mothers' eyes. |
