TJ, like most humans, you have a very short term time horizon. Today is not the future. Lots of things are going to happen, not today, but tomorrow and long into the future.
<so why is gold going up? >
The cost of extraction has indeed measured in US$, but that's not the main reason for the increase, but it's more to do with the fearfulness and lack of Happy Meal returns from holding the US$ which is in the midst of financial relativity theory inflationary and dilutionary acceleration towards black hole status.
The nearer it approaches the event horizon, beyond which nothing escapes, the more people will abandon it. Nobody will want to go down with the ship.
It's still far from that [probably] though I'm working relentlessly to accelerate the process into demise.
QCOM in 1999 was soaring towards Y2K and reached $200 a share. Gold has not soared so much as did QCOM in the 1990s. I was not beguiled by that as was well aware that it had far exceeded a sensible value and commented to my stock broker that I would not be surprised to see it reach $50 a share when the crunch came. I was surprised to see it reach not just $50 but $23.
QCOM did not perform the modern day miracles that I expected, but instead poured money down various drains and was swindled out of the pre-eminent position in CDMA that they held by the W-CDMA GSM Guild.
One shouldn't be taken in by gold rising vs US$. That says nothing about it's long term value compared with other more substantial ways of measuring human values. In NZ$ terms, gold hasn't really gone up much at all, and in NZ$ housing terms, it has dropped since I declined to buy it at US$323 per ounce a few years ago. NZ$-priced houses in Auckland have made gold look a pathetic store of wealth.
Today, the NZ$ has reached world record levels against the US$ and Yen. New Zealand is apparently taking over from them as world leader. Also taking over against gold which is not a serious currency like the mighty, if flightless, $Kiwi.
Mqurice |
