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Title: IS GOLD MONEY?
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Published: Jul 14, 2011
Author: Ron Paul
Post Date: 2011-07-14 13:07:59 by socalv8
Keywords: Paul, Ben, Good Question
Views: 75380
Comments: 131
Big Ben's hesitation was telling. What say you?
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#2. To: socalv8 (#0)
Money serves two purposes -- a medium of exchange and a store of value. Gold evolved as the most widely acceptable form of money over history because of it's characteristics -- it's scarce and durable. The pieces of paper that we pass around today are a lousy store of value because the government purposefully inflates the money supply to hand out to special interests. The only reason that they are accepted as a medium of exchange is because the government has decreed them to be so.
The same thing happened with gold and silver based money. We saw deflation and inflationary periods with gold. In fact, just finding new gold mines would lower the value of your purse. We have had gold and silver bubbles before. As soon as people start to 'cash' in their gold holdings the price of gold will start to fall. That's what happened to the stock market and real estate bubbles. People bought the things and as more people bought the more the price went up but as soon as the tipping point was reached for people selling the stuff back the values collapsed.
Dumb ass, the only way you can increase the supply of gold is by mining it. Historically, the gold supply has increased an average of 2% a year. On the other hand, there is no limit to how much fiat money a government can create and how quickly it can create it. This is why gold is a good store of value and fiat money is not.
As soon as anyone with significant reserves announces they are selling their gold the value drops. When the UK declared a sale of its gold in 1999 that was the fear and led to the Washington Agreement on Gold.
LMAO! That is the kind of nonsense that keeps stupid people storing the fruits of their labor in paper promises until they become poor stupid people. When I was very young a $5 gold piece would buy you a fine rifle, a silver dollar would buy you 4 to 5 gallons of gasoline. Had one kept that silver and gold until today they would still be able to use it to purchase the same items. Keeping the same money in paper would now get you, maybe, two rounds for that rifle and a quart of gas.
Yep. Here's the purchasing power of the dollar since the Federal Reserve was foisted on us:
You are a good poster, btw. Thanks.
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#4. To: jwpegler, mininggold (#2)
(Edited)
The pieces of paper that we pass around today are a lousy store of value because the government purposefully inflates the money supply to hand out to special interests.
#6. To: Godwinson (#4)
(Edited)
The same thing happened with gold and silver based money
#8. To: jwpegler, mininggold (#6)
(Edited)
This is why gold is a good store of value and fiat money is not.
#11. To: Godwinson (#8)
As soon as anyone with significant reserves announces they are selling their gold the value drops.
#19. To: eskimo (#11)
#29. To: jwpegler (#19)
Replies to Comment # 29.
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