gold chat, page-203

Hi Skol and All,

Well this conversation has, if nothing been quite entertaining thus far. I might add that some quite enlightening information has also ensued from it also.

Certainly, not all of us in here have had an education in economics and high finance.So it is good to read the somewhat more informed sharing their insights into what is at best a very murky pond.

Additionally, I note that some posters live or spend time in other countries where conditions are very different to Australia. Their postings serve well to broaden our perspectives and this can only be a good thing. Sure you can read all the international news you like but there is no substitute for the horses mouth, so to speak.

On the subject of the rationale behind buying and holding physical Gold and or Silver. If one is solely and totally invested in physical, then that is probably foolish and a form of gambling in essence. However a well diversified investment portfolio should always have room for some Gold and Silver, even as a totally contrarian hedge. Gold and Silver etc are not going to be dumped anytime soon as vehicles for profit or protection from market events. Thinking that they will be is contrarian in and of itself.
(Not that people in here don't already know that)

I certainly don't beleive the world is going to end(sic)although for sure there are tough times coming. I don't know if the Mayans will be proved right on December 21 or planet Nibiru will magically appear to destroy us all, although somehow I think not.

So in the mean time, back on Earth, things will continue as they have, with the proviso that things as they have been, economically and socially speaking, will not. Things are changing..for better or worse.

So perhaps someone, anyone, would like to offer us a form of trade that DOES have intrinsic real value. What is money?..should we hoard sea shells? bags of wheat?

Wealth is only a perception based on what others see as valuable and are willing to trade with a commodity that you perceive as valuable. Perhaps Gold has no real value..you can't eat it, live in it, breathe it or drive it. But it has perceived value as a unit of trade. It is certainly being used to purchase things with real value such as Oil, Weapons, Food etc. To that end it is like a game of musical chairs. Who will be holding all the useless Gold when the music stops? No, I think it will just be traded again back and forth adinfinitum, because in the human psyche Gold always has and will continue to be a convenient unit of trade. I can easily carry a kilo of Gold in my pocket but It would be realllly hard to carry a couple of bushels of wheat around while hoping that it doesn't rain or the mice find it while I am not looking. It is Golds durability that ensures it's place as money.

The old addage, "Lay not up your treasures where moth and rust doth corrupt", springs to mind.

When you think of it in those terms...Silver is being corrupted by virtue of it's industrial use. Not all Silver is recoverable once used and is being slowly consumed. If anything the prices of Gold and Silver should be reversed on those principles of supply, demand and availability.

Anyway...just a few thoughts..Thanks to all who keep this thread running. This old fella is still learning from you.