Well, What happened to all the GOLD HOARDERS ?

[joe t]

The basic idea is that if the economy collapses, dollars will be worse than worthless and people will need some other type of currency to trade with. Say I have bread and need eggs, you have eggs and bread but need butter. You probably don't want my bread for your eggs as you already have plenty of bread and my bread will go bad soon. But if I had SomeCurrency, I could give you some amount of SomeCurrency which you could keep in your pocket while you looked for someone with butter. This only works if SomeCurrency is widely trusted and viewed as having some stable value. Sure there will be situations where I have what you need and you have what I need, so we can do a straight trade without worrying about currency. But currency sure makes things easier otherwise. Gold and Silver were used as SomeCurrency in the past so it's easy to see them being used again. Doesn't have to be gold or silver, it could be matches, ammo or rubies. Or all of the above.

The people making the trades at that time (ie, the market) will determine how many loafs of bread, or eggs, or lbs of bacon you can buy with an ounce of silver, gold or rubies. Nobody will care or talk about dollars at that point.

Or, if the economy collapses, we could just find ourselves trading in RMB.

I understand.


But I was being kinda sarcastic because I think it is funny when everyone quotes Gold in Dollars.

 

[MossRoad]

OK - So we keep the Chicken...I just wanted to be sure...

I'd say we hold herfor ransom, but what are they going to pay with? Gold? Paper money? hahahahaa:laughing:

 

[EE_Bota]

Gold is in the same category as Beannie Babies-worth what people think they are worth, otherwise useless.

Reminds me of the dollar.

 

[KTurner]

Gold is in the same category as Beannie Babies-worth what people think they are worth, otherwise useless.

Gold has some, errmm, real life uses :laughing:

 

[houstonscott]

Gold is in the same category as Beannie Babies-worth what people think they are worth, otherwise useless.


I think you have it backwards, paper money backed by good faith are as Beannie Babies - worth what people think they are worth. Get it now? Light come on yet, you just explained gold but got it backwards, as usual.

HS

 

[greasemonkeyok]

...I think you have it backwards, paper money backed by good faith are as Beannie Babies - worth what people think they are worth. Get it now? Light come on yet, you just explained gold but got it backwards, as usual. HS

The concept actually applies to both gold and the dollar, but the dollar is currency, gold is not.

Your statement was: "I think you will find in the end of all discussions there is only one currency, gold. Been that way, forever, not likely to change."

Wrong. When was the last time you physically exchanged gold for goods or services?

 

[joe t]

Isn't there a lack of gold to make currency from anyway?

 

[powerpace]

When was the last time you actually delivered gold in exchange for goods or services?

curｷrenｷcy
/ˈkərənsē/
Noun
A system of money in general use in a particular country.
The fact or quality of being generally accepted or in use.

Gold is in the same category as Beannie Babies-worth what people think they are worth, otherwise useless.

March, 2013. Sold a Gold Genie wheel in exchange for Gold. I make a couple of trades a year in Gold and Silver. Have not sold Gold for about five years, Silver gets sold several times per year.

Them that has it, use it.

 

[greasemonkeyok]

[Delete double post.)

 

[greasemonkeyok]

March, 2013. Sold a Gold Genie wheel in exchange for Gold. I make a couple of trades a year in Gold and Silver. Have not sold Gold for about five years, Silver gets sold several times per year.
Them that has it, use it.

And that qualifies as using gold in exchange for goods and services? Technically correct on the goods part, but is in substance an exchange of one investment vehicle for another.

Its not like you purchased a tractor with krugerrands.