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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (76419)	7/16/2011 5:16:41 PM
From: Maurice Winn	2 Recommendations Read Replies (1) \| Respond to of 218107

Quite correct Skinow. Add to that criticism that it is expensive to mine gold which means much waste of effort to do so. As the price rises, there would be an absurd gold culture, with vast effort going into excavating or otherwise extracting more of the stuff. What a futile occupation. At least moais made nice ornaments around the edge of Easter Island so the effort to produce them resulted in something. Gold just sits stupidly in an expensive bunker [other than the ornamental sort and some material applications such as antenna contacts]. If there was no sensible better alternative, gold might make sense. But there is. Nearly a decade ago, I pointed out that $2,000 would be the US$ distress figure for gold pricing and $10,000 would be US$ replacement value [which in today's dollars would be more like $20,000]. Of course, if it turns into a Zimbabwe style rout, the sky's the limit and gold could be $1 billion per ounce or $1 quadrillion. Mqurice

To: skinowski who wrote (76419)	7/17/2011 12:49:06 AM
From: TobagoJack	1 Recommendation Read Replies (2) \| Respond to of 218107

the situation you describe is not a problem for the all-knowing gold standard capitalized or not economic activities ramp and goodness all about => gold gets revalued in terms of such activities and goodness => anyone with gold would be able to juice up the system with more valuable gold-backed credit, ad infinitum no matter, i expect and fear and relish that we shall have an opportunity to watch and experience gold standard in action, and learn much more than we can now speculate that is why we must try our best to speculate more just throwing some numbers around as example of what could pass for line of thought at pricing of usd 60k per oz (all measure in current day federal reserve note basis, i.e. not tomorrow's or thereafter), gold should be adequate as backing for all circulating money in usa at pricing of x, the world figure world to be at 3-4 x usa today, if so, either (i) gold at 240k makes sense, or (ii) usa shrivel to 6% of global gdp is rational let us see where the path eventually leads us if it is reasonable to talk about gold extraction cost (400 - 2000) in relation to gold purchasing value (1300-1600), then it should be equally sensible to discuss fiat paper money creation (0) and purchasing value (1 - 1000 - 100,000,000,000, depending on gps coordinate) using gold as money is sensible, for it otherwise is of no serious use using platinum as money is nonsensical, for its 1/4 living room-ful of global stock is truly limited, supply constrained, and besides, it is too useful using silver can make sense, though silver is useful for other application using paper is just comical, until tragedy strikes and hard, inevitably must choose our money carefully, because the choice matters - it is a matter of beauty and finess