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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (70873)	12/28/2008 12:54:01 AM
From: prometheus1976	Read Replies (1) \| Respond to of 74559

" the value remains provided people want the stuff"... Right now ,and for centuries past, people want the stuff. "It has special characteristics such as being easily transported, hidden and transacted with hordes of other people" Yep. "The price of gold over 2000 years is closely related to the cost of producing more of the stuff. It is just another commodity" Nope,not true.the value of gold thru most of history is NOT related to the cost of production. "Money is any set of assets used to buy goods and services, and has three key characteristics. First, money is a medium of exchange: it offers buyers and sellers a mutually recognized means of payment for exchanging goods and services. Second, money is a unit of account, or a yardstick for measuring the value of goods and services to sellers and buyers. Third, money is a store of value: it can be reliably saved, stored and predictably used once retrieved. Other desirable features of money are that it should have a stable value and be difficult to counterfeit. Also it must be fungible, durable,and have a scarcity factor. You also might ponder the difference between "Saving" and "Investing" My Regards,P1976