Because unlike gold I can buy stuff with currency....... And I don't know to many people that want to carry around pieces of gold to do their trade. Then of course consumption doesn't satisfy supply. Then there is the anecdotal stories of firms like Goldman driving the price up, and then recently putting on massive shorts.
Your participation in the discussion is appreciated, but it would be better to contribute hard data instead of opinion.
Then if your really into all that Austrian Non-Theory there are better 'mediums of exchange' like Bitcoin.
You'd be correct under normal circumstances, trading in a legitimate market environment geared toward price discovery instead of perception management. This is a non-linear aspect.
Exactly.
The most difficult hurdle to get over is one's own conditioning, belief, in the system.
The cold hard fact is this: JPM-GS, the Comex and the Fed function as one entity and they have
unlimited access to FRNs (which means they control the markets). The CFTC is a lap dog. Congress is a purchased hood ornament and Obama is a dupe.
The Fed has, effectively, been the
central bank of the world. They want that sweet deal cemented. It is the lynchpin of control.
Silver is the achilles heel.
Pay close attention to "central bank of the
world" above. Also the point about silver, which applies even more to gold. The precious metals reasserting their monetary role through distributed public ownership is the real threat, yet impossible to stop - it can only be delayed to a degree that prevents catastrophic failure of the global economy.
Bitcoin is in the same situation, albeit garnering a marginal awareness. That factor is critical and will take much longer than the return to gold as money (I didn't say a fixed gold standard). Regardless, what's good for Bitcoin is good for gold (and silver, precious metals in general).love that ignore button
+1
In Germany and Zimbabwe they had to print million and trillion dollar notes so it would easier to carry. Of course, prices of some commodities doubled every hour at the height of the hyperinflationary crisis. There is a book called When Money Dies where the Germany Weimar crisis is chronicled by eyewitness accounts. There were were several anecdotal descriptions of people using gold and silver to survive day-to-day.
Can't buy anything with gold is a bogus statement. I can trade or barter gold & silver as I wish locally. Sure, if I want to trade online, I have to convert gold to electronic currency. But its nothing close to the picture you paint where gold is no better than lead.
Yes, convenience is the name of the game. Stability from gold is now coming into greater favor than convenience of fiat paper. Gold's value relative to other assets has remained very steady compared to paper's valuation, and paper is only experiencing more disruption.
The ignorant and foolish will play while the smart and aware prepare: Donald Trump, chairman and president of The Trump Organization, explains why he will
accept gold as a security deposit in lieu of U.S. dollars.
“The legacy of Gold as a precious commodity has transcended to become a viable currency and an accepted universal monetary standard,” said Trump. “Central Banks around the world are holding Gold as a reserve asset. It is also a terrific, potentially lucrative diversifier in a portfolio, especially with such volatility in the stock market.”
