I think you missed Thomas Becker's POINT...
If one is a speculator and missed the opportunity to short gold...You can rejoice in the fact that it offers a RELATIVE opportunity to make money either up or down from here....BUT his POINT was...
If YOU BELIEVE THAT AT THE END OF THE DAY...YOU NEED THE ASSETS (not the paper money)...THEN THIS DROP IN GOLD's PRICE MAKES YOUR CURRENTLY EARNED WAGES (in U.S.$'s) WORTH MORE THAN YESTERDAY...
Think about this...if at the end of everyday, you converted your hard earned cash into an asset (GOLD for this example)...then you have more each day it drops...However, if you are one of those unfortunates who is seeing their currency devalued against the dollar...You end up with less each day even as it falls if your currency is devalued faster than it drops...
This board attracts interest from all over the world...to some...GOLD is now higher than it was a few months ago...
It is important that those who come to the table recognize or identify their goals or objectives:
- If you are a trader...your real hope is that prices change (whether up or down, so long as it changes) because your real objective is to own the cash in the end...(or use it as a means to acquire something else)
- If you are an investor, then your long term goal is to accumulate: some days allow you to acquire more gold than other days...
- If you believe in the eventual decline of all currencies, then you need assets that are readily exchangeable for the goods you will need (you either stockpile the non-perishables now or you acquire assets others will want...liquor/sugar/tobacco/coffee/water etc...) and you hope that people will recognize gold as a store of value in those hard times as opposed to cash...(begging the exchangeability problem, where silver/gold coins may be more suitable)...
Thomas Becker's point was: Each day gold drops in value (relative to your currency) offers you an opportunity to add it to your arsenal of assets...this is also true of the other assets I mentioned above (liquor, sugar, tobacco, toilet paper, gasoline, etc...)...Each individual has to determine what his/her needs are/could be and what they can offer to others in the event currencies have no trading value...(In a perverse way: You are being paid higher wages today than a year ago...there may be some satisfaction to that knowledge) |
