[quote]orion wrote:
Neuromancer wrote:
orion wrote:
Neuromancer wrote:
orion wrote:
Neuromancer wrote:
Deorum wrote:
Neuromancer wrote:
What is with this ‘gold’ fantasy on these boards?Seriously,it just baffles the hell out of me.I would definitely go with Orion’s guns over gold acronym as being more representative of true moneymakers/control systems.The other two ,oil and drugs , I’m on board with.
uggh. your missing the point. gold, oil, and drugs are the RESOURCES of the earth. that is what wealth is based on. guns are not a resource. further more all the money is the world is supposed to be backed in GOLD. that was the original idea behind the paper money. it was a paper representation of the gold you had(under the governments custody) its what gave paper money its value. in its early days you could go into a bank, give them a dollor, and get its equivalent in gold as return.
the reason that you do not know the role gold plays in this world is because people like you(and me) will probably never have real wealth. sorry to say.
Riiight…so are diamonds,platinum,and any number of other substances.While I agree gold WAS the backing material for currency,that day has long passed.And the reason you and most of the other nod alongs think you know the role gold plays,is because I seriously doubt you have ever traded or bought and sold gold in any form other than buying jewelery,and maybe the odd Krugerand,if that.I have,and enough to know it’s rather a treacherous area,a bit like diamonds.Ever traded those?
If I have misjudged you,please correct me.But I guarantee you 99% of the people on this board could not judge what they were looking at in terms of karat,purity and chemical mix of whatever they were holding,and sell it in any other way than by going down to their local pawn broker or manufacturing jeweler.The fantasy of holding gold is just that,a fantasy.When the shit hits the financial fan in the way the gold nuts envisage,what are you going to do…go around like in the days of the pirates shaving off small amounts to barter for bread?I can go for the angle where gold may constitute a part of a balanced investment portfolio,if that’s your thing.But if you think in this day and age it’s adequate measure of wealth,I think you are sorely mistaken.
I think you kind of miss the point of a gold currency.
Enlighten me,then we’ll see if I missed the point.
The whole idea is to base the money supply on something the government cannot control and that cannot be arbitrarily multiplied.
It is true as some skeptics say that gold has no intrinsic value, however they miss the point that nothing has any intrinsic value.
It just seems as you pointed out that in troubled times people dump the dollar and turn to gold. That right there is a clue as far as perceived value goes.
I appreciate and understand that.But what is essentially an emotional response to gold doesn’t make it any more viable as a real world currency.The day to day difficulties people will encounter make it useless.It’s all very romantic to hold gold and so on,but that’s about it.And for sure other things have intrinsic value.You’re hungry or thirsty,food and water have intrinsic value.You’re cold,oil and blankets have intrinsic value.Gold does not.Let’s say things go to shit.You’re telling me you’re going to trade with what?Jewelery?Krugerrands?Ingots?
I don’t see that panning out too well.
First of all noone is suggesting carrying that gold around.
If there was to be a gold backed currency banknotes would simply be gold recepits and that hhas worked just fine.
Then, not even in emergency situations do food and water have any intrinsic value. They only matter because they happen to matter to you. If you were an arachnoid from the planet Zorg, they might not be worth anything, in fact they might be poison. That is not as far fetched as you think because it shows the difference between a subjective evaluation that is shared by most people and an intrinsic, i.e objective value.
Also, you describe a situation where division of labor is breaking down and we are thrown back to barter. Well then no currency would be of any value though I bet that a new one would immediately emerge.
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Can we safely agree that gold backed currency ,at this point in time,is not how things are?So for the sake of this argument,a gold backed currency is like a unicorn.Non existent.
So the role of gold then is not currency.It is at best a perceived hedge against dollar weakness.even in that the value is doubtful,but no matter.The bottom line is that the gold has value because it has a tenuous link to the currency,that you may be able to turn your gold into more dollars at some point down the road if you have gambled right.If the dollar disappears,your gold reserves are essentially worthless.
So its a temporary investment/hedge instrument at best,and not a very effective one in my opinion.But please,by all means buy all the gold you want.And feel as wealthy as you want.