Ride the Tiger with CD Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rocket Red who wrote (132028)	9/29/2008 2:05:06 AM
From: Amark$p	4 Recommendations Read Replies (2) of 312269

Gold is a function of supply and demand. Yes, you are correct that there is no "shortage" of gold since virtually all gold ever in existence is still here... However, if one puts all gold available in world on a per capita basis (i.e. total ounces in the world divided by world population), then gold supply is shrinking on a per capita basis over the past 20 years. Also, if one looks at the growth in the supply of gold and compares this to the growth in the supply of fiat currencies, you will find that gold supply is increasing much less than money supply. My calcs show there are about 135,200 metric tonnes of gold aboveground. Annual production is about 2,500 metric tonnes per year. Thus, gold supply is growing about 1.9% each year for the past several years. Money supply growth has been increasing over 5% for the past several years. Not really trying to argue with you on your comment: "There is no shortage of gold" Just trying to make you realize that their is no shortage of US$ and other fiat currencies either... My point is, relatively speaking, there is more a shortage of gold than fiat currencies. (FWIW, world population growth is currently 1.2% each year)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next