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To: carranza2 who wrote (79062)	9/5/2011 11:03:41 PM
From: wonk	Read Replies (1) \| Respond to of 218135

...It is based on two things, the level of real rates as they relate to honestly-measured inflation and the levels of money in the economy, whether measured as MZM or M2 or the Austrian Total Money Supply.... You're not going to allow me to slink away, eh. OK, then riddle me this - assuming your conditions above were satisfied - whatever conditions you wish - what is the Fair Market Value price?

To: carranza2 who wrote (79062)	9/6/2011 8:12:10 AM
From: Metacomet	Read Replies (1) \| Respond to of 218135

It is based on two things, the level of real rates as they relate to honestly-measured inflation and the levels of money in the economy, whether measured as MZM or M2 or the Austrian Total Money Supply. Probably. But the prospector who had a poke of gold dust that he had panned in a stream probably didn't get that. And the soldiers on the pillaging crew knew what had transportable value. And even though there are probably very few folk who understand why gold has value, in a classic economic argument, there is a substantial cross section of humanity that understand that gold has prima facie exchange value. In periods when their traditional mediums of exchange are in decline, as fiat always manages to do sooner or later, there is an instinctive, maybe irrational, desire to have a form of barter value in order to exchange for goods and services. This is driven more by the realization that modern man is incapable of satisfying his personal needs as a result of reliance on a centuries old system of commerce that has a monetary underpinning. If the money fails, there will be a desperate need for a substitute recognizable medium of exchange. Maybe its irrational, but gold seems to be a leading candidate to fill the void