Today should prove that gold is a currency.
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Great interview guys. I agree with Peter’s assessment of Gold acting as a currency, and also feel too many obsessed over just it’s relationship to the dollar, when there are many moving parts to the world currency stage.
Big Al
Peter B. is the first guest that predicted the bottom for gold.
Hang on to him Al. That’s the MAN.
Peter
He is pretty good, Peter.
Gold is the world’s currency. Good interview.
Thanks Tenyear
Gold is NOT a currency. A currency is what a state issues and there are zero states issuing gold as currency these days. Neither is gold money because nobody accepts gold as payment. Gold is merely a store of wealth and a symbolic relic that represents money but is not actually useful for day to day transactions. It would be great to see an end to all the BS on this subject.
GOLD is NOT a currency – IT IS MONEY..plain and simple……silver is money too!.. paper currency NEVER ever should be used to replace the only money that ever existed….again….. Westerners are going to learn a very, very hard lesson about the HISTORICAL significance of gold and silver…sad…very sad!
Marc, not only Western government. All the governments of the world will learn in a hard way. Not having some hard currency constraint is going to burn them with inflation flame. Now all the governments are doing God’s work. It will succeed for a while but people are going to pay with their suffering. This is what I am afraid of.
Me too, Lawrence!
Lawrence
Backing a currency with gold (or anything for that matter) doesn’t prevent governments from printing.
That’s the argument about gold backing, its kinda pointless, other than people perceptions.
If they truly back currency with gold , they cannot print without acquiring more gold. I don’t understand you. Do you mean government dishonesty? It is not gold’s problem. Just like criminal breaking the law is not law’s problem.
That’s the issue, the government has to be honust.
Which is pretty difficult to achieve.
Anything can be used as a currency, Lincons greenback is a great example, but other things have worked just as well.
Bill Still explains this very well. Mathew disagrees of course, but Mathew is wrong on that point. lol
Gold does not prevent printing, 1914 we were on a gold standard, check how much currency was printed for the war, all they figured they needed, no restrictions.
1939 we were on a gold standard, check how much was printed, no restrictions.
Gold did not prevent printing in the least in either case.
As far as Ive been able to tell, the only time gold or silver prevents exsesive amounts of currency is when the actual metel is used, and even then, we had huge piles of silver they could have decided to coin.
Also, using the metal opens the argument that not enough currency is available etc etc.
Anyway, for complete explanation try Bill Still “money masters” u tube.
We, as a species, need to invent a new system that does work and actually prevents the psychopaths from ruling. Prevents us from destroying the planet with pollution etc.
Gold backing paper isn’t going to do that. It only makes it easier for them to control things.
Now, that was funny. Nice respite in an otherwise hectic day!
That is, in fact, what Peter is saying.
SD
Im gonna mention that gold is a currency should people decide to use it as a currency, anything can be used as a currency.
And yes, I agree that gold is money.
Gold is not money SD. Prove it is money by spending some.
Gold (GLD) has confirmed its head and shoulders bottom and, as of today, has reclaimed the 233 day EMA and has broken out of its uptrend channel.
http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=1&mn=0&dy=0&id=p38489775530&a=385060100
It appears that copper might have bottomed yesterday.
http://stockcharts.com/h-sc/ui?s=$COPPER&p=D&yr=1&mn=5&dy=0&id=p42686508525&a=385055785
Monthly copper, 20 years:
http://stockcharts.com/h-sc/ui?s=$COPPER&p=M&yr=20&mn=11&dy=30&id=p09065759834&a=379527959
Another view, 14 years:
http://stockcharts.com/h-sc/ui?s=$COPPER&p=M&yr=13&mn=11&dy=30&id=p33072725896&a=368884587
Matt, I may differ with you on base metals. Due to the sudden unexpected rise of China, metal demand suddenly increased in the late 90s and early 2000s. This caught industry off guard. No one predicted that China could be so hungry for so long and industry was ill prepared in the80s and 90s. As a result, the production could not keep up with Chinese demand so the price soared. For more than a decade, the price is several times the production cost. For example, it took 60 cents to produce copper in the early 2000s and copper stayed in 3-4 range for 8-10 years. It was crazy. Due to the relative ease of finding, the investment boomed. Also due to the slow process of permitting and building a mine, these mines come to production even increased amount of metal is no longer needed. Than supply overwhelmed the demand eventually. For most mines it can still sell their metal higher than the cost. We may need several years with price lower than production cost to take these productions offline. It may have started last year. One casualty of overproduction is silver due to its by-product in nature. The shutdown of base metal mines will be good for silver price.
ease of finding base metals
Copper could get substantially cheaper in real terms (priced in gold), but in dollars, 10 maybe 20% is probably the downside risk from here.
Yesterday’s low was about the same as the January 2003 low in real terms. Therefore, the current price in dollars is probably the new “60 cents” just as 1130 gold became the new 255.
As far as I know, China’s GDP will still grow by close to 8% in 2015. 8% growth now is far greater than 8% growth ten years ago (since GDP has grown substantially), and China’s not the only one.
Artificial demand, in the form currency units, will be created at a faster rate than real demand will collapse, in my opinion.
Copper priced in gold; 20 years:
http://stockcharts.com/h-sc/ui?s=$COPPER:$GOLD&p=M&yr=20&mn=11&dy=30&id=p63201425177&a=385074126
Yes I think China still growing but they don’t have to use proportional amount of metal. It gets higher value now. I will stick to PM. Did you see goldseek about shanghai delivery? It delivered 61 tons in a week. By this rate it is more than world production. I think last year it would be 2100 tons. If India opens up, you can add another 1000 tons
I prefer the precious metals too, but I think $copper will do very well when silver really starts to outperform gold.
Since October 2000, commodities in general are down 80% when priced in gold. That’s the price deflation that the Marxists are trying to hide by destroying their currencies.
http://stockcharts.com/h-sc/ui?s=$CRB:$GOLD&p=M&st=1981-09-07&en=today&id=p36822789546&a=370277015&listNum=1
Still 200 dollars shy of 1550! You got a long way to go buddy.
Good discussion by Mcalvany starting with that magic 6.5% employment benchmark first set by the Fed, then politely ignored by the same–leaving those who pay attention to wonder….. The meaning of that 6.5% is also discussed and how gold is performing in spite of it all..
Gold is NOT! a currency. It is protection. Gold reacted today because people are afraid of collapse of governments and central banks. Not currencies…
The USD, the Euro, CAD,YUAN are all currencies
If gold was a currency you could go to Lowes and buy a tractor. You can’t. Jeez guys c’mon…
THANK YOU KEN. Good to see there is at least one person here with any common bloody sense. Of course gold is not a currency. It barely even qualifies as money anymore.
gold will save my family from concentraion camps by bribing prison guards. It will nto save my family from currencies….
Go watch a any young or middle aged person at Starbucks. Do they flip a brick of gold to pay for a Latte? No they flip their smartphone and use a Pay application. I am surprised people still believe the goldbug fibs….. The currency is n the bank account and the app is a tool that access it.
Please don’t start saying Google or Apple Pay is currency it isn’t. It is a tool
I’m sorry guys but that goldbug currency argument was proven dead from 2011 on…….
For economic calculations and general score-keeping, gold is both money and currency. That’s why you can trade it with all the other currencies on the Forex. It’s also why central banks own it.
Re: “I’m sorry guys but that goldbug currency argument was proven dead from 2011 on……”
Would you care to make your case? What is it about 2011 that proved anything at all?
So many clueless people out there…
To be precise, gold is not currency but is de-facto money around the world. Currency has to be legalized as medium of exchange by government. It has the strongest characteristics of traditional money definition. No fiat possesses these properties. So fiat can be currency for the sole purpose of exchange. Gold is accepted as money by the people and they store it, regardless how governments try to damage it. Gold is ideal to serve as money, which only silver comes close to. However, silver is losing above ground inventory fast, which makes it vulnerable to supply shock. I believe in the long run, gold and silver will serve as stabilizers to the currencies. World government may have no choice but to embrace gold. I don’t think they will watch the countries to ruin without accepting God’s help.
A REAL SWISS MAN opinion ! https://www.youtube.com/watch?v=FnIYPPhOKcw