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

To: arun gera who wrote (86523)	1/28/2012 9:38:36 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 219712

To: arun gera who wrote (86523)	1/28/2012 11:05:13 AM
From: Maurice Winn	1 Recommendation Read Replies (2) \| Respond to of 219712

Arun, you are right that such database entries are friction free and unbounded. But that doesn't mean they have already been done, which they haven't sufficiently to justify gold's current price compared with the marginal cost of production of gold. If we use a different measuring stick for value, such as hiring an average sort of American to do some work,by paying them in gold, we can see that since Y2K they have had a pay cut from $280 per ounce to $1700 per ounce. An American paid $28,000 per year in Y2K was receiving 100 ounces of gold per year for their gold mining efforts. Now they are getting only about 15 ounces of gold per year. That is a very large pay cut. They were overpaid back in Y2K so it's not that it's an undeserved pay cut, but it nevertheless a pay cut. They can now be hired to dig gold for a small proportion of the output. In Y2K, I could own an American, a pile of gold, or a stack of dollars. A dozen years later the relative values have shifted a LOT. Americans have gone wayyyyyyy down in price as measured in gold. Are they really worth that much less? With a billion Chinese and a billion Indians now bidding for work, a quite large price cut was reasonable, but that's a big price cut, not the usual 20% or 30%. Mqurice