To: TobagoJack who wrote (50362 ) 5/24/2009 6:29:53 AM From: elmatador Read Replies (1) | Respond to of 217544 As Gold becomes pricier in all currencies, will all paper money will be exchanged into gold? No. And here is why. As the Brazilians discovered that selling gold is more profitable and a surer bet than cultivating Bananas in Vale do Ribeira. This is Vale do Ribeira, the bananaland with the climate to growth bananas. They abandon the place and go mine gold in Serra Pelada. Serra Pelada gold mine in its heydays. The banana fields are deserted and there is now more people who wants banana than bananas in the market. Thus price of banana skyrocket. I would ask why the bananas prices are so high, the bananicultor (or banana farmer) and he says. I need to pay double to keep my people here to deter them to go to Serra Pelada. This is Elmat in Vale do Ribeira when banana are priced by the market. The newcomers are not skilled enough to undestand about storing and transporting the bananas and my losses are now higher. As price of bananas keep climbing, it becomes economic to bring bananas from Brazil's Northeast to the market in the south, thus money start spreading into other areas where they would sell only locally. As the easy pickings of Serra Pelada is taken, and the prices hte miners have to pay to live there, any item there costs ten times than in the south, the legs and hands start returning to bananaland Vale do Ribeira, since salaries got better. Production climbs again and more bananas coming from Northeast prices come down. The market has a time component in it. During periods of time a given good has high value, at other times the same good is worth less when everyhting is considered. Bananas, as well as gold variates overtime. Thus value must take into consideartion the time dimension.