The price of Gold


Always the go-to for the gold crew. . . . after they’ve lost the argument.


Funny enough it was used for a while, until they ended the printing and let people use other currencies.

Hope and Despair In The Last Great Gold Rush


Says that man that frequently resorts to childish insults.


I thought the goldbugs argument was that all this money printing was going to send gold to infinity?

#4125 … 2014-11-27


Repeating it doesn’t make it so. I am not an electronic engineer, but as far as I know all of these things would be possible without gold, just as all these items continued to exist after lead was phased out of electronics. (there were some problems, such as shorter component lifetimes due to things like tin whiskers, but I think they have been resolved.) Incidently the same website you linked (which does not make the claim that electronics would be impossible without gold) says that [iron]… is the most-used metal by both tonnage and purpose."


deGaulle increased French gold reserves at a time when the US was reducing theirs.The fact that the US was selling 12,000 tons made it a lot easier for deGaulle to buy, and at a low price. Between 1930 and 1970 the price of gold fell from $600 to $200. Imagine if your grandfather had invested the family billions in gold in 1930, you’d probably be on the social today. The 1930 dollar would buy eight cents worth of gold today.


Looks like you’re not the most “nuanced” individual to ever walk god’s good earth.
And what about the price of bananas too?
Here’s a list of the ten biggest currency failures to help you with your calculations of the value all the currencies that did not fail. … -the-world


If you are looking for the hyper-inflation scenario it is closely tied to debt default. When a government destroys it’s nations capital (defeat in war) or neutralises it and can not longer sell it’s debt and defaults, it resorts to the printing press to pay all the people dependent on it. They in turn consume the remaining capital with the new money pushing up prices. In order to mask the problem the government may impose price and currency controls to prevent their citizens switching to other currencies and the problem gets worse as there is nothing left on the shelf to buy. You may have a longer period of inflation beforehand the hyperinflation period itself which usually lasts 2 to 4 years. Then the reset and they start again.

When there is nothing on the shelves to buy, gold becomes a liability to you and you will need to bury it to keep others from murdering you and stealing it. They don’t tell you that in the gold sales literature.


Why use something as expensive as gold if we could use a cheaper alternative? And while iron is the most used metal, that doesn’t take away from the fact the unique properties of gold.

BTW, I was responding to the other poster who claimed that gold is a useless shiny metal.


As The Dollar Strengthens, Gold And Crude Oil Drop In Tandem - -> … in-tandem/


If you care to check, DeGaulle was able to exchange their reserved for gold at the official exchange rate of $35 an ounce. Even if gold prices had declined to $200 an ounce, acquiring it at $35 was indeed a bargain.


He exchanged France’s US dollar reserves, a fixed amount of dollars, for gold at $35, and got a fixed amount of gold. The other Gold Standard member counties ate the difference, at least on paper I think, so de Gaulle didn’t make any new friends there. As to continued purchases of new gold, I believe like all others he paid market price. If the market price was $200, and you owned one ton, and de Gaulle offered you $35, would you sell, and if yes, why?

de Gaulle’s decision was in part, a reaction to what he termed “America’s Exorbitant Privilege” whereby the US could print a $100 bill for a few cents, but everyone else had to cough up $100 worth of goods to get one. Of course the US had financed the $400B, (in today’s money) Marshall plan, and wanted some return on its investment, and de Gaulle with his anti US/UK streak was never likely to comply with that.


Jan 2014 gold price $1225/€900

Jan 2015 gold price $1160/€985



That price says more about the USD than anything else.


I am only interested in the Euro price, which has been relatively strong throughout 2014, I own some gold for insurance. Who knows what come next in Euro land, certainly doesn’t look to be very cohesive right now. And before another one of the anti-gold trolls asks me why I don’t just own some dollars, I do, although right now the dollar looks a little over-bought and the euro a little oversold so might be time for a swap.


5.3% fewer $, and 9.4% more E needed to buy an ounce. That’s pretty close to the 12% E/$ depreciation for 2014.
$0.947 = E1.094 for 2015 anyone? :slight_smile:


Real gold might not be as plentiful in the future if this story has any truth in it.


Counter-argument: let’s reframe that as miners are not discovering as much as in the past of an element that very few people need and which ample supplies already exist of in various vaults around the world.

IIRC, actual physical uses of gold are as follows: jewelry, dentistry and electronics. Jewlery could immediately reduce its gold usage to 0.1% of its current level and the result would not be detectable to the naked eye because of gold plating over more abundant metals. The necklaces and rings would be lighter, but who really cares about the weight of a decoration?

And the total usage of the global dentistry and electronics industry appears to be a tiny percentage of current global mining production of 2000 tons a year, because those industries long ago learned how to make a little go a long way.


Negative rates are great for gold; as I’ve shown on this thread before real rates (nominal less inflation) are what drives gold - because it’s essentially the return you’re giving up to hold the metal…
Well the Swiss 10YR is now negative … that’s TEN YEARS of guaranteed losses on your CHF - so why not hold some gold instead!; the 30Yr German Buxl is around 90bps! Dwell on that - 30Yr debt is 90bps – the Japanese 30YR never came inside 1% through decades of stagnation and zero interest rates. So again, same story, why not hold some gold.