http://finance.yahoo.com/news/Gold-Prices-Top-Record-Break-tsmf-1814135815.html;_ylt=Ap0eUi9AJYlhRUa2qRyAObm7YWsA;_ylu=X3oDMTE1czUyYnUxBHBvcwMyBHNlYwN0b3BTdG9yaWVzB HNsawNnb2xkc2hpbmVzd2k-?x=0&sec=topStories&pos=main&asset=&ccode=


Gold just sits there. It does not pay dividends. You can't eat it. You can wear it and look like Mr. T but other than that, what good is it?

Some will say it will be the only thing of value after the whole economic world crashes down. Really? Do you remember Hurricane Katrina? Your could not buy things with dollars (or gold) during that mess. You could however get something if you had a bottle of water or a gallon of gasoline. So much for gold holding it's value.

Sorry to rant but I just don't get it.

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Ben
1987 190d 2.5Turbo

It was (and still is, currently) the world's currency backing all the dollars floating around. But if the world economy collapses, I'd rather have dollars than gold. The jews are even wiser - diamonds. Diamonds are a hell of a lot easier to transport than gold, but once again, I'd rather have dollars in my possession. Which is what I'm doing.

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- Brian


1989 500SEL Euro
1966 250SE Cabriolet
1958 BMW Isetta 600

Its a good way to store money, although diamonds are even better.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

bottom line: if the other guy is unwilling to accept whatever it is you are wanting to trade, game over. some lower social/economic sectors may not understand what gold means, therefore you have to speak their lingo. perhaps they are in desperate need of water. you trade them a gallon of water for a gallon of gasoline which you need. everyone walks away happy.

now, if you are dealing with bankers who understand why they are keeping a big stash of gold under the streets of Manhattan, that's another story......

Gold has intrinsic value. It may buy more or less goods or services, but the value is constant. You are correct; it does not "grow" except when the government inflates the currency.

Gold is important in the electronics industry where its value far exceeds its beauty.

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1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags

Do you really believe that the US dollar is backed up by real gold reserve?? You must be kidding... The dollar stopped being the real currency at the moment that they've replaced:"Silver Certificate" with "Federal Reserve Note" Come on man, even The Federal Reserve is NOT Federal. Everybody know that. The US is one of the few countries around the world that actually DON"T own the currency used in the country. The Federal Reserve is private bank.
On the real dollars backed by the real silver or gold you can see the writing:
"In Silver Payable To The Bearer On Demand" Look at your pocket...can you see this?? No...because they are not backed by real quantity of Gold or Silver.
Now they print them faster than we can use them

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http://i680.photobucket.com/albums/v...7/scotflag.gif http://i680.photobucket.com/albums/v.../scot2flag.gif

"If women are so bloody perfect at multitasking how come they can't have a headache and sex at the same time?"
Billy Connolly

I think demand is being driven by gold ETF's and it is a bubble right now, like many before. Don't know what will pop the bubble though.

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1998 C230 330,000 miles (currently dead of second failed EIS, yours will fail too, turning you into the dealer's personal human cash machine)
1988 F150 144,000 miles (leaks all the colors of the rainbow)
Previous stars: 1981 Brava 210,000 miles, 1978 128 150,000 miles, 1977 B200 Van 175,000 miles, 1972 Vega (great, if rusty, car), 1972 Celica, 1986.5 Supra

the gold standard went bye-bye in 1913.

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Ben
1987 190d 2.5Turbo

how about a thirsty banker sitting on his roof in New Orleans after Katrina?

there was no social strata after Katrina...there were all the same.

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Ben
1987 190d 2.5Turbo

that's it. post Katrina New Orleans, the law of the jungle set up. only three things counted: shelter, food and water and the means to protect those three. the cops made sure they confiscated the guns from the people which left the people without the means to protect their homes, food and water. after the people were disarmed, the gangs moved in and robbed, raped and pillaged to their heart's content.

the system is working.

just thinking about this discussion. the Rodney King riots in South Central LA, Katrina, etc. when a made made or natural disaster occurs, it really really changes the land scape, doesn't it? people move on down to what they are really about, A-N-I-M-A-L-S.

best be prepared to protect the home front or they will storm the gates and take your wife, your children, your food, water and money. then, after they get what they came for, they'll just kill you unless you kill them first.

Welcome to the Jungle.

i wonder how i can protect myself with gold coins in a situation like that?

i bet that's when the intrinsic value of gold really comes out. not.

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Ben
1987 190d 2.5Turbo

I agree, depending on which area of the country you are situated in, best be prepared. for years, people have laughed at the Mormons for stocking up on bullets, water and food.

the Mormons may have the LAST LAUGH on us all.

Gold's value is it is fairly stable. I would guess its value has been established, culturaly down through the ages. Does it have any other value than that, some industrial. If you look at other metals, aluminum used to be more valuable than gold by volume. I think 6 times as much. Platinum has had value over the ages. Its value today is driven by many industrial applications, catylitic converters and spark plugs etc. Silver too has had value over the ages. It still has a lot of industrial applications.
Diamonds and other gems have had cultural worth over the ages to. I think diamonds have their value due to Debere's slick advertising and control of production from their diamond mines. An engagment ring was'nt fashionable till aroud WW2 or after. It basically replaced a lot of 'human worth laws'. I am blanking on the exact term. Basically, if a man called off an engagement, she wasn't deamed fit for mariage. Basically, she was a social outcast, and her only real employment was prositution. I think this still is culturally embeded in Thialand.
The value of gold does vary. I think it was only $200/oz around 2000. So, it is purely speculative. Although it is failry compact and probably represents a pre-paper money way of indirectly exchanging goods.
Also, take nickle. It was refered to as the 'witches metal'. It was hard and basically worthless. The only pre-industrial application was that it was used in touch holes of blackpowder fire arms. Now a days it is worth something as an alloy to increase strength etc. in steel. Basically, a strategic metal.
Tom

NOTHING can protect you in all situations. But after the crisis, I'd like having some gold around.

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1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags