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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (98876)	6/24/2009 2:03:36 AM
From: The Vet	2 Recommendations Read Replies (1) \| Respond to of 116555

In fact, if I recall correctly, the gold we possess in reserves is valued at $42.22/ounce. What's that in Zimbabwe dollars? The problem is always that an ounce is defined as a fixed and recognised standard world wide, and gold metal can be specified at a measurable purity and delivered in a specific physical form... However you are making all your measurements and comparisons using an undefined and undefinable yardstick called "a dollar" and despite your assurances there is very little control on the number produced either in physical or electronic form. I continually see the old adage that "all the gold ever mined on earth still exists". Well of course it does! All physical elements ever mined still exist in some form except perhaps for a little uranium and a minute amount of material sent off into space never to return. However the only thing that is able to increase without limit seems to be fiat money!

To: Hawkmoon who wrote (98876)	6/24/2009 6:04:08 AM
From: maxncompany	Respond to of 116555

"Now think about this.. Since the world's governments/CBs control most of the physical gold on this planet, isn't it true that they are the ones more likely to benefit from an increased POG??" They don't see it that way. Economies run on fiat currencies, gold is less important to them. If gold rockets up, the value of their gold does, too. But their currency simultaneously is greatly weakened causing more problems than the benefit gained by their increased gold value.