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Starfirenv (< 20)

Why The Price of Gold Doesn't Matter or It's A Bird, It's A Plane, It's, It's...SUPERLUMP!!

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April 27, 2010 – Comments (9)

No, it's a commodity, it's a currency, it's a hedge, it's a wacko wingnut thing. What?

Unlike mining stocks, gold is not an investment. Gold is money. It is a store of wealth.

The gold price simply doesn't matter. Gold's value as measured in a fiat currency is arbitrary.
The real statistic worth measuring is purchasing power.

Here's all you really need to know-
http://guardiancommodities.com/blog/180-why-the-gold-price-doesnt-matter.html
Got PMs?

9 Comments – Post Your Own

#1) On April 27, 2010 at 9:18 PM, binve (< 20) wrote:

Yes indeed! :)

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#2) On April 27, 2010 at 9:29 PM, SockMarket (66.36) wrote:

that's how it should be but gold has gone up ~400% since 03. No currency, much less a basket, has fallen enough to fully account for that movement.

Ideally it would be a store of value but with all the commodities trading it is an investment as well. 

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#3) On April 27, 2010 at 9:47 PM, alstry (35.21) wrote:

Gold was $1000 in 1980

Today it is approaching $1200..... 30 years later.

Gold is a metal that is dug out of the ground.  It has been a store of wealth for a few thousand years.

Horses were the primary means of transporation for a few thousand years...

Welcome the the digital age........

 

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#4) On April 27, 2010 at 11:38 PM, ralphmachio (23.95) wrote:

Damn! I thought gold was going down, but now that Alstry is trying to steer people away from it, Im going to have to put half my portfolio into bullion! 

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#5) On April 27, 2010 at 11:54 PM, Starfirenv (< 20) wrote:

A commment from the original post worth sharing:
"Gold does well whether we have inflation or deflation. For those Elliot Wavers out there look up Jon Extners inverse pyramid. As other assets deflate or evaporate they move to gold as the ultimate storage of wealth. In 1929, a million dollars was 50,000 ounces. In 1965 it was about 25,000. In 1999, a million dollars was 4000 ounces. At this morning’s price of $1142 an ounce, a million dollars is 875 ounces"

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#6) On April 28, 2010 at 1:10 AM, Starfirenv (< 20) wrote:

Binve- This goes to your point on Robs blog. It's about VALUE! Thanks.

Daniel- Agree. All those "Cash for Gld" commercials. The power of emotion, perception and momentum. Fake bounce if you will.

Al- Close but $1k wasn't hit til '08. Not to nit pick, but you missed by 28 yrs.

Ralph- LOL. I expect a correction of 10-20%. Patience should bring a better entry.

Silver to the Moon, 

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#7) On April 28, 2010 at 8:42 PM, Robuh (26.27) wrote:

Seriously, you people really are brainwashed when it comes to gold. 

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#8) On April 29, 2010 at 12:08 PM, DiceMagic (< 20) wrote:

"brainwashed"? It is just simple economics, gold is after all money simple as that.... are you suggesting that all currency trading is performed by people under the influence some sinister plot? Just right now the gold/$ currency pair is in a cyclical bull run and just because it is gold it seems as if those who can't see the run or won't believe in the intrinsic value of gold try to abuse gold bugs as if it is some new national sport or something. Gold is just gold nothing more or less. It is a currency pair that is working quite nicely thankyou very much, I'll be out of gold at some point, I might keep a krugerrand or two as a sweet reminder of the tens of thousands I've made out of gold since 2002.

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#9) On May 03, 2010 at 4:48 PM, rofgile (99.33) wrote:

I don't know what the point of gold is.

If there was ever a currency panic here in the US, and dollars became worthless, I still wouldn't care about gold.

I would care about property, stock in companies, food.  But I wouldn't trade any of those things for a little shiny gold coin.

 

 -Rof

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