Michael Redman
Illuminator
- Joined
- Oct 29, 2001
- Messages
- 3,063
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
How is US currency worth anything?
- Thread starter CaptainManacles
- Start date
Calling me irrational is not an argument. I have followed my own advice, my basis in gold is roughly $270 USD/oz. I've beaten the S&P 500 by anywhere from 13-15% per annum for the last seven years with what is in my estimation, very little risk.
This is probably proof that I'm a bad person, but if the price of gold colapses, I'm going to laugh.
The fun part, only because of people like tippit, the gold price is going up. So it's like a circlejerk of gold buyers.
I am a bad person and I'm gonna laugh.
consider what would have been if tippit had bought gold in the 80ies? He wouldn't even have broken even compared to a crappy savings account. It's selective perception.
I am a bad person and I'm gonna laugh.
consider what would have been if tippit had bought gold in the 80ies? He wouldn't even have broken even compared to a crappy savings account. It's selective perception.
The fun part, only because of people like tippit, the gold price is going up. So it's like a circlejerk of gold buyers.
How is this argument of yours about gold different from the argument about dollars of the first post in this thread? Maybe there will always be enough people who want gold, so its price will never go down.
(Serious question. Maybe there is a difference. But it's not obvious to me what it might be.)
How is this argument of yours about gold different from the argument about dollars of the first post in this thread? Maybe there will always be enough people who want gold, so its price will never go down.
(Serious question. Maybe there is a difference. But it's not obvious to me what it might be.)
Yes, the price of gold could keep going up. Also if I invested all my money in Google shares they might keep going up too, but in general investing all you money in a risky asset is stupid. You run a large risk without getting a larger average return on investement. With the dollar on the other hand the price is being managed, so absent an unsound monetary policy inflation will be kept low.
It's not, not at all. Gold is extremely useless. The only thing that makes people give it some trust is that there's not a whole lot more of it. Of course if any country went towards an all-out gold currency, and the gold price would skyrocket, maybe it'd become economical to start filtering the seas, or everyone would be standing knee-deep in the lakes like during the california gold rush.How is this argument of yours about gold different from the argument about dollars of the first post in this thread?
We could try something that's useful for a change. Like, electrical energy. So instead of gold or paper money, we'd exchange super-efficient, powerful batteries that are handy and capable of carrying several megawatt hours. But the good news is, we don't need that, as long as we can use money-by-convention. Like gold or paper.
Never say never, when talking about the future.Maybe there will always be enough people who want gold, so its price will never go down.
the price of gold in Dollars? That'll go up for a while more, I think. But not necessarily against a more stable currency.Yes, the price of gold could keep going up.
for similiar reasons. Shares will go up dramatically in nominal value while the dollar goes down. But that doesn't matter, what's important is how the actual spending power develops.Also if I invested all my money in Google shares they might keep going up too,
The current monetary policy (which will result in inflation) is, lacking better alternatives, pretty sound.but in general investing all you money in a risky asset is stupid. You run a large risk without getting a larger average return on investement. With the dollar on the other hand the price is being managed, so absent an unsound monetary policy inflation will be kept low.