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To: Hawkmoon who wrote (66643)	9/30/2010 5:48:39 PM
From: average joe	Read Replies (2) \| Respond to of 219521

"And like I mentioned, since the cost to extract gold is well under 50% of the current spot price, every ounce that is produced now and in the future undermines the value of previous quantities of gold." Or adds to it. Gold at the north pole would need thousands of more dollars added to the current price to be economic. Curious you think every ounce of gold has the exact same production cost, and a mine in NW Tanzania has the same production costs as a mine on the Carlin trend of Nevada. Does that mean that a bbl of oil in the Gulf of Mexico has the same production cost as one in the Athabasca region of Alberta or a Bakken will in N. Dakota? "And how would someone know the difference between a 14K gold piece and a 24K one at face value without a scale?" Your getting purity and concentration mixed up with weight. "as we saw with $150/bbl oil, those markets that are so thinly traded are easily manipulated." When did oil become thinly traded? The fact is the U.S. is bankrupt and people will continue to exchange their meaningless currency for gold. If oil and gold ever fall off the U.S. dollar standard real problems will start to happen so thank your lucky stars you still have time. en.wikipedia.org

To: Hawkmoon who wrote (66643)	10/1/2010 3:45:02 AM
From: average joe	Respond to of 219521

"But gold is not a panacea. It's merely a medium of exchange, the value of which is determined by the marketplace" Money Money is the tool of men who have reached a high level of productivity and a long-range control over their lives. Money is not merely a tool of exchange: much more importantly, it is a tool of saving, which permits delayed consumption and buys time for future production. To fulfill this requirement, money has to be some material commodity which is imperishable, rare, homogeneous, easily stored, not subject to wide fluctuations of value, and always in demand among those you trade with. This leads you to the decision to use gold as money. Gold money is a tangible value in itself and a token of wealth actually produced. When you accept a gold coin in payment for your goods, you actually deliver the goods to the buyer; the transaction is as safe as simple barter. When you store your savings in the form of gold coins, they represent the goods which you have actually produced and which have gone to buy time for other producers, who will keep the productive process going, so that you’ll be able to trade your coins for goods any time you wish. “Egalitarianism and Inflation,” Philosophy: Who Needs It, AR