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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: 79784
Comments: 131
Big Ben's hesitation was telling. What say you?
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Begin Trace Mode for Comment # 4.
#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.
#5. To: Godwinson (#4)
There's gold dissolved in the world's oceanwaters. I believe one estimate is 21 billion ounces. Of course the big problem is the price of extraction
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.
Tulips anyone?
The flaw in this statement, is that a LOT of people were too lazy to buy physical gold, and instead "invested" in gold or silver exchange-traded funds (ETFs), IRAs or "graded" gold coins. Most estimates place the number of ETFs outstanding as ~7 times MORE than physical gold in existence. From http://pacificcoins.wordpress.com/1-gold-silver-scams/: Banksters and precious-metal "traders" sold pieces of paper obligating their company to produce the gold or silver on demand. And then they kept selling more and more, even after their stock of precious-metals was already sold off. You assume that the investors all hold physical metals. When those investors finally get around to trying to take delivery, the ensuing scandal will rock the financial world, and cause the prices of gold and silver to catapult (easily) five times current prices. I'm a buyer of precious metals, but only physical metals. No "paper gold" for me!
We? Stealing from Jews causes a bubble?
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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.
Replies to Comment # 4. 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.
#6. To: Godwinson (#4)
(Edited)
The same thing happened with gold and silver based money
#10. To: Godwinson (#4)
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.
#16. To: Godwinson (#4)
As soon as people start to 'cash' in their gold holdings the price of gold will start to fall.
This is what world renown economist Bob Chapman recently had to say about the COMEX and other ETFs, in the August 12th issue of his newsletter The International Forecaster: “Speaking of COMEX gold and silver futures, it appears that the Illuminati have solved their physical gold and silver inventory shortage which was causing them great headaches as massive demands for physical delivery were received. At first, they just lied about their inventory. The inventories did not change even as hundreds of requests for physical bullion were settled month after month, often with the help of central banks like the ECB and other outsiders like the Canadian mint. Now, instead of using physical bullion, they can hand you an ETF contract instead. So they are trading paper for, well, more paper! Pretty slick, eh? They want to give investors the convenience of having an interest in a publicly traded security so they will just hang onto it and not demand physical delivery. But therein lies the trap. These ETF’s have leased large portions of their bullion out to the bullion banks for purposes of gold and silver suppression. They do not have what they say they have any more than the COMEX does, and if you hold on to your ETF contract, you may well become the next victim of a Madoff-like Ponzi scheme.
#25. To: Godwinson (#4)
We have had gold and silver bubbles before.
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