Gold is irrelevant

[Kevin Daly]

The fixation on gold in today's show was embarrassingly childish, as if the real value in a transaction derives from a metal.
Gold is pretty and pretty good for electrical contacts and a few other things, but other than that what of it? What value does it have to humanity locked in vaults?
The value lies in whatever people agree on as having value in exchange for goods and services, and ultimately it's the goods and services themselves that have value (well, admittedly most of the goods exchanged are worthless, but that's another story).

 

[ZombieOctopus]

I agree entirely, gold in itself is useless. If you want some sort of fall back if the dollar tanks, buy something universally useful in itself.

If currency was suddenly valueless and I have something you want, I can't think of a reason I would want gold in trade for it. I can't eat gold, I can't use gold to catch food, I can't use it for energy, or shelter.

 

[paraschtick]

And ... if needs be the government can confiscate it ... just like Roosevelt did in 1933:

http://www.the-privateer.com/1933-gold-confiscation.html

So ... pretty pointless putting your money into gold when it can be easily taken away from you .

I think its probably better to stock up on toilet roll. Now THAT might be useful if and when the big crunch comes ... although it isn't as pretty as gold

 

[Gareth]

lol I take it you guys kissed and made up after the little tiff on UFO Mystic.

*cough* ** UFOMystic Interview on the Paracast **

 

[DamnDirtyApe]

The fixation on gold in today's show was embarrassingly childish, as if the real value in a transaction derives from a metal.
Gold is pretty and pretty good for electrical contacts and a few other things, but other than that what of it? What value does it have to humanity locked in vaults?
The value lies in whatever people agree on as having value in exchange for goods and services, and ultimately it's the goods and services themselves that have value (well, admittedly most of the goods exchanged are worthless, but that's another story).

When has gold ever not been valuable? When a 20km wide meteor hits Earth, then perhaps it may be useless.. otherwise it will continue to remain valuable (as it has for the past 3000+ years). You personally may find no value in gold, but the rest of the world disagrees. No sense in fighting reality.

 

[Mullpig]

lol I take it you guys kissed and made up after the little tiff on UFO Mystic.

*cough* ** UFOMystic Interview on the Paracast **

LOL ! Hey Gareth, I was going say the same thing. Then when Kenn mentioned Leary in passing I thought here we go ( secretly hoping ) things are gonna kick off here, damn it !

 

[Gareth]

LOL ! Hey Gareth, I was going say the same thing. Then when Kenn mentioned Leary in passing I thought here we go ( secretly hoping ) things are gonna kick off here, damn it !

Yeah I made popcorn for nothing too.

(actually, who am I kidding - microwave popcorn is good any time, any where. Triple butter baby. So good)

 

[Gareth]

Heres an idea for a show: Kenn Thomas and Peter Robbins talking about Wilhelm Reich. That would be a GREAT show.

Wilhelm Reich was one interesting character.

 

[skunkape]

You just keep on thinking that when gold is trading at $3000 an ounce and your Federal Reserve paper is devalued by half due to the coming inflation. Anyone who hasn't invested a portion of their savings in silver is going to feel like a fool in 10 years, too.
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[cottonzway]

I think people who don't understand gold really need to look at history. It's been used as a means of trade and a measure of value since civilization.

 

[Poi]

Gold has gone up in value because the people who buy it also buy into our entering a hyperinflationery period in the near future. Could happen of course, since the Fed is printing money to a fare-the-well, but I suspect that period is very far down our economic road.

The Fed can't raise interest rates without causing an immediate crash of the dollar, a definite hyperinflationery tactic. After all, there's still a lot of money to be made in the currency exchange. Many are predicting a dollar rally soon, though even that bubble wouldn't last forever. Were I going to invest, I'd probably buy Treasuries for a short duration.

What we have now is a very serious deflation of the dollar with all that money printing. It's something we've never had to go through before, at least on the current scale, with hyper-massive debt not of "our" making. We get the slow decline rather than the quick-end. Those stuck with gold will have to learn to eat it, one way or another.

This is a time when none of the old rules apply, at least for a long period. I'd rather have oodles of toilet paper, stored water and food, but the period of our slow decline will not allow for our having saved enough. We're in for a long one.

 

[cottonzway]

I agree with a lot of what you posted there, Poi. The only thing I would disagree on is getting "stuck" with gold. Say, for example, I were to buy treasuries. If a serious failure happens and I lose the value I have nothing. If something happens to gold in terms of a serious loss in value (something I don't see as a likely option, but have to consider it) then I still have the gold that will one day have value you again.

That is kind of my point about history. Gold has stood the test of time in all types of economies throughout histroy.

What amounts someone should have is up to them. It is good to have in general along with basic supplies incase of a serious financial disaster, either in terms of a failure of monetary system or personal disaster.

The value of gold right now is directly represented by the devaulation of the dollar more then anything else. Everyone wants out of paper.

 

[Poi]

I did say I wouldn't hold Treasuries for very long, Cotton. They're just another bubble in the making and I have no idea how long a rally might last. Some predict no more than a year, but that may be too long, I just don't know.

But if I think this period of decline will last fifteen to twenty years, without hyperinflation rearing its equally ugly head, I won't live long enough for gold to make a true comeback. My perspective is skewed toward my age of course.

What you're really saying is that gold will be the next bubble. I just don't put faith in bubbles because they are killing this country (and others.) Since I believe all the old rules don't apply in our current understanding of economics, relying on the love of precious metals is another pipe dream. One day, maybe, when inflation grabs us again, sure. I just don't see that happening for quite a long time.

I'm usually wrong about such matters, but I've lived long enough to get some perspective, some I don't find encouraging. I try to look at all this with fresh eyes and a sense of new adventure, but I'm getting a little long in the tooth to be able to adapt to changes of great magnitude. The alternative sucks the big one though.

 

[methshin]

Gold - not essential to human life - $1,156 USD per ounce

Water - essential to human life - >$1 per litre

It may not be essential, but to say that it is irrelevant is just backwards.

Gold has been adorned and sought after for thousands of years, and we can all be certain that this trend will not change. ANY commodity with a value as high as golds should not be taken lightly, cast aside the abandoning paper money mumbo jumbo and take a look at the facts. Gold is valuable around the world, there are always people interested in purchasing or trading for it. If you can name a time frame in the last 6,000 years where gold was not highly valued or was labelled as irrelevant, I'll eat my hat.

Paranormal, no. Worth knowing about, hell yes.

 

[CapnG]

When has gold ever not been valuable? When a 20km wide meteor hits Earth, then perhaps it may be useless..

Espescially if the meteor is made of gold! Then it'll be worthless.

No sense in fighting reality.

Interesting choice of words... "reality"... given that economics, like religion is is just made up, arbitrary, bullshit created by humans to give other humans something to worry about. Too bad it dominates our lives.

 

[Poi]

Water rights are very quietly being bought up all over the state of Texas right now. I'm aware of at least one company involved, but I wonder if there are more. Absolutely no one is talking about it so I wonder if we're going to kiss cheap water good-bye soon too.