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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 379.87

+0.4%

Nov 11 4:00 PM EST

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To: carranza2 who wrote (78990)	9/5/2011 10:24:00 PM
From: Hawkmoon	Read Replies (4) of 217700

Yes, there is a USD inflation but a gold-measured deflation. So does that mean that, back in the '90s, when gold prices were much lower, there was inflation in Gold? Strikes me that, when the price of a commodity far exceeds it's basic cost of production, that represents inflation. Like when someone builds a house, then sells it for 100% of its cost of manufacture, that represents real estate inflation. What's the cost of an Iphone? I understand the profit margin of Apple is nearly 60% on its iPhones: tech.fortune.cnn.com Not as good as a gold miner producing at $500/ounce, but still a nifty profit which adds value to the raw materials and labor necessary to produce it. So does that mean that the price of an iPhone is inflated over and above what it costs to produce it? Ultimately, inflation will not be measured in dollars versus gold, but in dollars versus the cost of staple items that human beings MUST HAVE to survive (food, energy, shelter.. etc). The price of Gold and Silver can rise infinitely without truly impacting the purchasing value of the USD and other currencies vis-a-vis these basic staples of survival. It's called a speculative bubble and we've seen it before. But unless the price of other non-discretionary commodities also rise, then it's not really inflation that will be noticed by the average consumer. Hawk

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