Could someone please explain to me why Gold is $1800.00 us

[dikfreezin]

you can not eat it
you can not live in it
you can not grow anything on it
it will not make your car go
Rev. Canada will not accept it as payment.

you CAN make a circle out of it put a bobble on and pay for it for the rest of your life.

Okay i feel better.

DF

 

[threepeat]

you can not eat it
you can not live in it
you can not grow anything on it
it will not make your car go
Rev. Canada will not accept it as payment.

you CAN make a circle out of it put a bobble on and pay for it for the rest of your life.

Okay i feel better.

DF

No, you cannot eat gold and cannot put it in your gas tank, just like you cannot eat a $10 bill and put a $10 bill in your gas tank. You also cannot plant dollar bills in the ground and grow anything on them either. I'm not being sarcastic, but stop and think about that for a second.

Really, I'll wait...

The purpose of money is to provide a common medium of exchange in commerce. In other words, the economy runs a lot more smoothly if we are not bartering things and trading them every time we go to the store. Yes, everyone can eat chicken, but try settling your national debt with a supertanker filled with chickens. You have to feed them, clean their poop, and make sure they don't get sick. And how much is a baby chick worth? More than an adult? Less? How about an old chicken? That should qualify for a discount, right? How much?

Aristotle has given the following defintion of ideal money: http://www.marketoracle.co.uk/Article10370.html
1.) It must be durable. Money must stand the test of time and the elements. It must not fade, corrode, or change through time.

2.) It must be portable. Money hold a high amount of 'worth' relative to its weight and size.

3.) It must be divisible. Money should be relatively easy to separate and re-combine without affecting its fundamental characteristics. An extension of this idea is that the item should be 'fungible'. Dictionary.com describes fungible as:

"(esp. of goods) being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind."

4.) It must have intrinsic value. This value of money should be independent of any other object and contained in the money itself.

Why is gold going up so much now? Because gold actually takes some work to mine and fabricate, so it has intrinsic value. Every other form of money has no intrinsic value, but is an IOU of a counterparty. Any IOU is only as good as the credit worthiness of the counterparty. As countries print more and more paper money, their ability to make good on all these claims come into question. That's why gold is going up.

Ok I feel better now too

 

[luvsdaty]

The diamonds they make artifically are too small, there only used as abbrasives.

 

[luvsdaty]

Shouldn't this be in a thread about diamonds???? or ak-47's????

 

[ripplechip]

It's one of only two metals that has colour (the other being copper). In other words it's pretty, also easy to spot and tell apart.

It's not very reactive and very stable so it lasts a long ass time.

Very easy to work with.

Because it's stable, you can find it just laying around being all valuable and goldy, without needing to be processed somehow (like that boring but maybe much more useful aluminum).

It has some very useful properties as far as metals go that make it useful for practical reasons, conductivity for example.

Aside from being durable and impossible to fabricate (being an element) it has practical uses that go far beyond it's historical use as currency. As far as commodities go it's a safe bet, even more so than oil.

To contrast.. diamonds are worth shit. They are just carbon and their entire worth is a complete fantasy built out of thin air.

Gold is just neato stuff and in 2 million years when we are long extinct and highly evolved intelligent cats and dogs are fighting an eternal war with each other over who the precursor humans liked more, cats or dogs? Gold will still be awesome.

 

[Jerbear]

Did you not watch cowboys and aliens?

 

[Big Dog Striker]

Did you not watch cowboys and aliens?

Might have been distracted by Olivia Wilde.

 

[vancity_cowboy]

it's $1800 because there are some very rich people who have been trying to keep the price down for 70-odd years now. it SHOULD be $5800

 

[InnocentBoy]

Thats simply what happens when people vote in a pres that promises something for nothing.

 

[mas9998]

well tell you with my 100 percent view that jan 2012 we will have 20525 gold then and down south the begainnig of hyperinfation for a 2 years
maybe.

 

[Ned Flanders]

I cannot figure out the yield or even the earnings on gold is, so it seems to use a "greater fool" valuation scheme.

 

[Horse99]

Gold has been money for 5000 years.....all the people who argue against the merits of gold, are happy to walk around with paper in their wallets......the paper money in your wallet has no yield either.....take a match to your wallet anytime, I'm happy with my gold.

 

[storm rider]

I am just pissed off that I bought a sportscar a few years back instead of buying 20 ounces of gold (in bullion) when it was less than $300 an ounce.....had I done this I could sell it now and pay off 50% of my outstanding mortgage debt.

SR

 

[uncleg]

It's all Krusty's fault.

 

[storm rider]

In 1986 I gave 1,000 Microsoft shares to each member of my family. Most of them still have their shares, one person immediately sold their shares and bought (among other things) the biggest TV available at the time.

Each Microsoft share bought in 1986 is 288 shares today. The value of a Microsoft share in 1986 was $21, The value of a Microsoft share today is $25.54. That big TV cost that family member $7,355,520

In another thread I talked about the "why" of why people should always be looking at the future and not at immediate desires.

Yeah well call me an idiot savaant (dont care about the spelling) as I figured gold would go through the roof....and it did....same as I figured Fording Coal was the winner in 2008 for 2008 when coaking coal pushed $300 a tonne before the company signed it's yearly contracts....got pushed off that due to another persons greed towards my investment horizon/interests......cant say as I would be retired from investing in gold but I would be had I opted for Fording Coal.......all told I would be worth 1.9 million with all taxes down the road.....I shall kick myself in the ass for the rest of my life for being sloughed off a good thing by another persons greed and desire to profit off of me.

SR

 

[the old maxx50]

The reality is that only 1% or less of the population will ever have any gold of significance to hedge inflation .. I have to agree with the first comments on this thread . All the gold in the world is not going to help you when the world goes too shit.

If you have the money to set aside to invest and try to profit from what ever .. then i say that is great .. and I Hope you prosper.. You have managed to do your home work , had some great tips and advice and bought at the right time .. It is not an option for every one .. and as we saw in the last 10 to 12 yrs many people who thought they were set for their retirement , lost most of there saving .. even even property lost value.

Gold is said to be worth that much , $1800 and more because it is accepted form of collateral , there is a finite amount ..and not every one can pull it out of there ass . ,
What ever this world is going through right now and in the future it has gone through be for , maybe not on a globe scale .. But when it is all over .. after millions maybe billions of people have dies from wars , hunger .. and epidemics .. Just maybe we can make this worlds a better place.. A place where hording gold will only make you look foolish Because it has very little value .. Gold does have its uses , making in in to bricks and piling them in a vault and say loook what i have and it is worth so much ,So you better treat me with respect because i have the power. That is not one of the good uses for it .

 

[InnocentBoy]

Simplest explanation is that gold doesn't ever go up in value, it just means that your "dollar" buys less gold than it used to hence being worth less.

 

[InnocentBoy]

That was one of the primary reasons they had to get rid of the guy, can you imagine what would happen if oil was measured in gold and not american dollars?

It's hard to imagine IMF will go back to the Gold Standard when they are expanding SDR. The rise in gold is based on speculators who are betting on the the collapse of the Western financial system which is based on debts, debts and more debts. If the lot of you are betting on collapses of governments worldwide, then it would be good to buy gold. Truth is, I don't see it going anywhere over 2500 unless more QE by the fed. There are rumors about Libya trying to start a Gold Dinar before it's collapse, I am not sure if there is any truth to that, but its an interesting point of view nevertheless.