Is gold heading for the basement?

[Q Classic]

Gold would become a lot more valuable if we ever fought the Cybermen. Since they're vulnerable to gold.

YOU WILL BECOME LIKE US!

[duke o' york]

I'd put all my money into kryptonite, but that damned Luthercorp has cornered the market.

[Kuciwalker]

Originally posted by Thue
A government has the option of printing arbitrary amounts of more money, thereby reducing the value of the money you hold. Because of the current US deficit some people worry that the US will have to start printing more dollars in the not-too-distant future.

Those people aren't the ones who trade serious amounts of currency. The US government* knows better than to do that.

*the parts in control of monetary policy

[Zkribbler]

Gold is the tradtional refuge of investors during times of trouble. If there's a possiblity of war, you don't know how certain stock of corporations will do; you don't know what's going to happen to currencies.

But right now, with the uncertainty coming out of Iraq and out of North Korea, I would think that gold would be at or nearing its highs. A major terrorist attack would send it higher, but not much else.


But if I were going to invest in gold right now, I'd buy South African gold mining stocks instead. That way, you get not only the solidness of owning gold, but hopefully you'll get a nice stock dividend as well.

[Whoha]

Governments can't print gold.

[Thue]

Originally posted by Kuciwalker


Those people aren't the ones who trade serious amounts of currency. The US government* knows better than to do that.

*the parts in control of monetary policy

True, the US currently has a policy of only printing money on behalf of banks as part of the fractional reserve lending system. However, if the US government gets into financial trouble (look at the current and projectet deficits...) then they can still change that policy.

[Kuciwalker]

Except the parts of the US government that control monetary policy are smart enough not to do that.

[Urban Ranger]

Originally posted by SlowwHand
What's going to be funny is when people lose their fetish for diamonds. That's the only thing that gives them value.

Don't forget that there's an international cartel that keeps the price of diamonds high dispite the annual production.

[Urban Ranger]

Originally posted by Zkribbler
Gold is the tradtional refuge of investors during times of trouble.

I have always wondered about that, as gold has no intrinsic value to us at all. It's just a trading medium, so again it's value is only as good as people's, uh, faith.

Me? I'd stockpile clean water.

[SlowwHand]

Originally posted by Urban Ranger


Don't forget that there's an international cartel that keeps the price of diamonds high dispite the annual production.

Which goes to my point exactly.

[Flip McWho]

We only came off the gold standard with Nixon.

Gotta give the older generations time to die off.

[Kuciwalker]

Originally posted by Urban Ranger
Me? I'd stockpile clean water.

Which would be stupid, as inventory costs for equivalent value would be enormous, among other things.

[Provost Harrison]

It's a shame that gold is wasted on jewelry - something of no practical use, when considering its usefulness in other applications - optical surfaces, electronics and its chemical resistance. Pity really...

[Imran Siddiqui]

What, is there a gold shortage? No, well then why ***** about it being used in jewelry? It looks good on people, and there is enough to go around for other applications.

[Ecthy]

Because he's a commie