what happens when gold stays below $1,200? , page-9

Einstein, Why is gold any different from a piece of paper which can be produced from next to nothing, and someone swapping their hard grown food to get it. Like paper, the price of gold is dependant on confidence. Gold, however is hard to produce, paper is easy. Keep paper under the bed and it will become wothless over time. Keep paper in the bank and it will become less worthless. Keep gold or PMs and their value long term will be maintained because gold etc cannot be prostituted by govts.

BTW, I just posted elsewhere, that The EU is considering having deposits over 100,000 Euros partly confiscated if a bank gets into trouble (ala Cyprus).

If you hold a $1 paper note, you can swap it for maybe $1.25 (rarity) and buy nearly a litre of petrol. In 1985 that $1 would have bought you over two litres.

If you hold a 1945 2 shilling you can swap it for $6 plus and get 4 litre of petrol, about the same as you could in 1945.