Federal Reserve wont let Germany see all its gold...lolol

[Bam-bam]

The reason you saw that much short term volatility in gold is due to your beloved fiat currency you fucking imbecile.

yea, when gold goes up its because it rocks, when it goes down blame the currency 

oh the retards.

really, im out.

[Yev33]

yea, when gold goes up its because it rocks, when it goes down blame the currency 

oh the retards.

really, im out.

No you moron. It rocks because it goes up and down but remains steady over the long term. Didn't your macro economics book teach you that?

[Roger Bacon]

hahahaha!!!

Getbiggers butthurt over a very solid hedge against the devaluation of worthless paper.

[Kim Jong Bob]

So you are going to tell the dudes that bought gold last year and are losing FOURTY FUCKING PERCENT of their savings to not worry because gold is "safe" and 12 months is too short of a sample? roflcopter

no matter what bs excuse you throw at it, there is no way something that can make you lose 40% in a year can be considered a safe bet. no fucking way.

It is the equivalent of you holding dolares for 12 months and the inflation rate shots up to 40% year. It is just crazy and it *never* happened during the whole history of the american currency. Never.

Holding dolars is much more safe than holding gold, period.

And you retards cant even grasp a very simple mathematical concept called historical volality. What a shame.

correct me if im wrong wasnt the gold value lsst year at a record high? Only an idiot would buy gold then

[ukjeff]

No you moron. It rocks because it goes up and down but remains steady over the long term. Didn't your macro economics book teach you that?

It remains steady over the long term because "people" manage the markets.

FFS its just a bit of shiny metal.

[Yev33]

It remains steady over the long term because "people" manage the markets.

FFS its just a bit of shiny metal.

It remains steady in relation to other commodities which follow supply and demand. In relation to the dollar? Well let's see... Average price of gold in 1952 $34.60 per ounce, in 2012 about $1830. But to be fair let's go back to before the financial meltdown say 2006, about $605. And let's not forget that the dollar is the strongest of the fiat currencies. What's even more interesting is that the price of gold has been pretty steady up until around 1914 and has been climbing ever since. What happened around this time? Oh yeah, the birth of the Federal Reserve.

[Roger Bacon]

[Nomad]

You are missing the point.
Try this, without the existence of money, how much is gold worth?

See, not a lot, its money that has the worth, not the gold.
It's the medium of exchange.
If you had a big bar of gold the first thing you would have to do for it to have any value is exchange it for cash.   

You are retarded. Paper money by itself is worthless unless markets put "faith" in it. Gold is what is still really valuable and which is why the dollar was backed by gold for centuries until recently.

[ukjeff]

You are retarded. Paper money by itself is worthless unless markets put "faith" in it. Gold is what is still really valuable and which is why the dollar was backed by gold for centuries until recently.

Im retarded?
Lets run with your analogy then.
Paper money only has value because people put "faith" in it.
So what gives gold its value if its not "faith" of people?

[ukjeff]

I don't understand why some people hate gold so much, the price of gold has no effect on your life.
Or does it?

If gold is useless why do central banks hold it on their balance sheet. They should just sell all of their reserves of this worthless, useless asset.
Or do they know something we don't?

Because Gold retains its value.

Its because people believe in it.

[Teutonic Knight]

USA wouldn't exist if it wasn't for slavery. FACT!

A you forgeting John Adams obtaining vital loans (5 million guldens) from Amsterdam bankers 

[Teutonic Knight]

you wouldnt exist if it wasnt for slavery. FACT!

 

[ukjeff]

Would you say gold is important?
Yes, beacuse people believe it is.
Why did people choose gold as the ultimate form of wealth?
Because of its properties.
Who made them choose gold?
Who made who? I dont know what you mean by that, people in power chose gold because they had big sticks.
Were they forced by governments?
Governments are just groups of people, people decided we would use gold
Or did it come about naturally?
Man made decisions dont come about naturally.
Is there something about gold that made it hold it's value over thousands of years of human civilisation, during which everything else has lost value due to entropic degradation?
its nice and shiny and looks nice and we can make things out if it.
It must be due to golds unique physical and chemical properties.
Not really, we could use anything if enough people decided.
Same way gold would be worth nothing as of tomorrow if enough people agreed.
"Gold still represents the ultimate form of payment in the world. Fiat money, in extremis, is accepted by nobody. Gold is always accepted." Alan Greenspan
Take a gold bar into an estate agents tomorrow and try and buy a house with it see how it pans out.pardon the pun

[Ganuvanx]

Gold and silver have always been money since recorded human history. Every primitive tribe that has walked this earth recognized gold and silver for what they are. That fact didn’t change in 1971 because some lame president said so. Most countries today are doing everything they can to acquire as much gold as possible as the world moves away from using the world reserve currency, the petro dollar which is in the process of being printed into oblivion. Cotton/paper rectangles with printed ink on them do not fit the definition of money, they are debt based currency. The Germans know full well what happens when you print your currency into oblivion hence their insistence in getting their gold back from the criminals at the Federal Reserve. The price of gold and silver has been suppressed for decades. Gold, also referred to as “power money”, is going to a minimum of 5000 per ounce; some say it may go 50000+. Gold and silver have no counter-party risk. As a system collapses, all forms of “wealth” funnel down to true wealth, which has always been gold and silver. Not having any at this point in the game is foolish.

[Griffith]

The fact the world still puts huge monetary values on gold, silver and jewels is laughable.  Jewels have their place in some mechanics but that's about it.

Now to the usa.  Are you saying some stealing and over lending is going on?  Say it ain't so.

At least it's something physical regarded as having value for thousands of years instead of thin-air.

[Bindare_Dundat]

You are missing the point.
Try this, without the existence of money, how much is gold worth?

See, not a lot, its money that has the worth, not the gold.
It's the medium of exchange.
If you had a big bar of gold the first thing you would have to do for it to have any value is exchange it for cash.   

in countries where money is virtually worthless due to massive money printing, people turn to trading gold for food. yeah, gold for food. so scoff all you want but thats hiw some manage to actually eat.

[ukjeff]

in countries where money is virtually worthless due to massive money printing, people turn to trading gold for food. yeah, gold for food. so scoff all you want but thats hiw some manage to actually eat.

Exactly my point, it has value because the people deem it to have value.

This isnt easy at all.
You have to forget about what the medium of exchange is and just concentrate on the "belief of the people".

It doesn't matter what the "thing" is, it's simply the faith of the people that counts.

[_aj_]

Should the reign of fait currency fail, the most common stores of value will be: food, ammo, gold. The first and second because of their utility and the final for its place in the historic pantheon of value stores. The first two are obviously more important.

[El Diablo Blanco]

FACT: People like gold because it's shiny
FACT: People like diamonds because they are sparkly.


People put a value on things like they are puppies.

[Griffith]

FACT: People like gold because it's shiny
FACT: People like diamonds because they are sparkly.


People put a value on things like they are puppies.

People want the value of their money to be based on something physical.....

[ukjeff]

People want the value of their money to be based on something physical.....

No they dont, they want to be sure that when they go in a shop the shopkeeper is happy to accept a card or cash.

Gold never enters their head.

[no one]

some of GBs financial elite in here solving the worlds economic crises one post at a time.

[El Diablo Blanco]

some of GBs financial elite in here solving the worlds economic crises one post at a time.

Taking another breath from sucking Gale's nutsack?  You try wayyy to hard to be witty.  Just give it up.  You are not liked on getbig.

[JOHN MATRIX]

Most valuable commodity is bullets. With bullets you can obtain all the others

[_aj_]

some of GBs financial elite in here solving the worlds economic crises one post at a time.

LOL. It is kinda sad, buncha body fetish cultists (me too) talking shit about economic theory. Quite the Mensa chapter.

I have always found this guy to be illuminating: http://www.zerohedge.com/

twitter: @zerohedge