The price of Gold


Exports are the way to wealth, import mineral, add value, export it. This brings money into the economy.
If you have some other mystical way of creating wealth, please advise the world? And, ideally give us an example.

Please do not say buy government bonds.

Otherwise, we will have to continue living in a world where exports are a way to wealth


How is any of that a contradiction? The employees add value to the company, so they are paid a slice of the earnings.
Whether this is fiat or gold backed makes no odds?

Another idiotic statement by someone has no idea how business or creating value works.

Keep typing away in the financial sector matey.


Well, looking at history, there is nothing conspiracy about questioning the amount of gold held at the Fed;

Starting in the 1959-1969 administration of President Charles de Gaulle and continuing until 1970, France reduced its dollar reserves, exchanging them for gold at the official exchange rate, reducing US economic influence. This, along with the fiscal strain of federal expenditures for the Vietnam War and persistent balance of payments deficits, led US President Richard Nixon to end international convertibility of the dollar to gold on August 15, 1971 (the “Nixon Shock”).

A number of countries want their gold due to doubts of the amount declared to be in reserve and the amount of debt being accumulated.
Best to drain, sorry, repatriate the gold held in US prior to the Fed attempting to raise interest rates and causes another financial shock.


You still short?

You would have struggled to be more wrong. In fact, it proves your economic mumblings are just ideological in nature, not founded on understanding or intellect.

Short bonds. Brilliant.


de Gaulle’s anti Americanism wasn’t simply confined to matters of gold. He had chips on both shoulders, and more. He also tried to keep the UK out of the EU. Farage eat your heart out.

Contrary to your assertion that US gold might be ephemeral or non existent, there is in fact no great mystery. You’ve been gorging on too many conspiracy theories.

As a result of Bretton Woods, between 1960 and 1970 US reduced it’s holdings of gold from 20,000 tons to 8,000. Today it holds about 4,500 tons, which is about 50% more than Germany, the #2 holder. Almost all US gold is held at Fort Knox. The New York fed holds more, 7,000 tons, but almost all of that is held in trust for foreign governments. I wonder why?


I have never actually shorted government bonds, where you have this notion from I’m not sure. Although in a normal market it would have been a good choice.
The Fed hoovering up most bonds issued by the US government is not a normal market.

Now, you have avoided my question Daniel, please advise how wealth can be created (without the use of a printing press).


So you believe de Gaulles decision to take possession of gold as opposed to dollars that were loosing value was due to him having a chip on his shoulder?
I would be of the opinion it was a financial decision, take possession of an asset that is under valued or get rid of dollars that were over valued due to the amount in circulation.

The fact a number of countries are repatriating their gold does start to ring alarm bells, call it a “conspiracy” if you wish. I don’t know what you would call Germanys attempt to do it.

*While we haven’t been allowed to inspect escapes me, I’m no conspiracy theorist, but the Bundesbank should be able to audit the gold once a year like it does with reserves in Frankfurt,” Hans Olaf Henkel, German member of the European Parliament
* … l-reserve/

The gold is/was being stored in the NY Fed because at the time of making the decision to do so, the US was financially sound. Today, the situation has changed. Therefore it’s prudent to move it to a more secure location.

Of course, it’s all a conspiracy until proven fact.


Yes they would. They might work differently, but they would still work. Gold is used because it is available with x properties at y price. Other materials are available, just not as cheap.

Uh-huh. Just like genital mutilation, cultural significance is all good…


The word was ‘useful’, but whatever. It wouldn’t be on my desert island shopping list.



#4111 … Lower.html

Should get a good slam lower this week. Don’t personally see any major drivers to gold in the near team. I have been adding a few quality miners on the bad days. I actually have a pile of money to invest at the moment, but nothing seems cheap in other sectors right now. Perhaps Ill just wait it all out.

Anyone got any ideas on how low oil can go?


You sure are getting into '‘crazy’ and you obviously do not understand what a store of value is all about.

Tell me, what was the value of the Zimbabwean dollar, was 1 trillion Zim dollars worth more than a single ounce of gold?


Another one who hasn’t even bother to read my post and the link I provided. You’re the one that said gold is a useless shiny piece of metal, I provided proof that it was not.

You can have all the copper, tin, iron going but your PC, mobile phone, laptop, ipod, medical equipment, satelites, space exploration, wouldn’t work/wouldn’t be possible without gold.

Now answer me these questions please.

  1. When has gold ever gone to zero?
  2. Compared to currencies, when has gold ever failed?
  3. If gold is such a useless shiny metal, why do central banks the world over hold it?


You’re wasting your breath on this lot! Gold’s been an ugly investment the last three years, they have the upper hand in terms of schadenfreude, and that’s all this thread seems to be about. Gold composes a useful small percentage in any diversified portfolio, buy when its cheap and right now gold miners are very cheap.


Gold miners are just floppy bits of paper. You might as well buy USDs. If you want to buy gold, buy gold. As Scratcher says, though, buy it when it is cheap, sub-400 dollars, I reckon (but that is a completely random guess), buy more than you ‘need’ then wait twenty years to sell the excess… if you really believe in collapse, buy a shotgun license and a gun-club membership and learn to shoot.


Guns? Its all shooting folk and genital mutilations with you! You’re quite the cheery one!


I’m sorry miss, I have a cold…


If you ask the wrong questions the answers don’t matter.

As a % of world trade and capital flows between nations, the gold trade is insignificant. There is very little gold used as a medium of exchange, so it really does not matter how much or little the central banks hold it is not used as a backing for the currency and is sold for dollars to buy other goods and services. But it’s not just gold as a commodity that is falling in price, there is major change happening, call it the war trade.

The King of Dollar Pegs - Doug Noland -> … -pegs.html


Good round-up thanks.


Swiss reject plan to hoard gold, limit immigration - -> … 23772.html