I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
Wednesday, August 21, 2013
Gold vs. Industrial Commodities
Click to enlarge.
Kinda scary.
Click to enlarge.
Kinda scarier.
Your opinions may vary of course. This is not investment advice.
I can speak from personal experience that a 1-oz gold coin feels really good in the hands. No denying it.
I can also speak from personal experience that a Les Paul guitar feels even nicer in the hands and there would still be plenty of money left over to buy a PS3 and a Rocksmith game.
Cherry picking the starting point to the depths of the Great depression and the ending point to 10+ years in a bull market does distort the trend a bit, especially when compared to how buried cash has done.
Nobody here is recommending buried cash as a store of value for the next 100 years.
No sarcasm in this post. It's rare but it does happen.
ReplyDeleteJ.P. Morgan: "Gold is Money. Everything Else is Credit."
ReplyDeleteSome people claim financial memory is short. I'm not so sure. It's been ~ 30 years since the last gold bubble!
ReplyDeleteAnd when was the last tulip bubble?
Common knowledge, uh huh.
http://research.stlouisfed.org/fred2/graph/?g=lF4
ReplyDeletegold price in gallons of gas.
Anonymous,
ReplyDeleteIf you believe that to be true, then what happens if too many speculatos borrow dollars to buy money?
mab,
ReplyDeleteI'm a big fan of the ____ to toilet paper price ratio.
Dotcoms? Check.
Real estate? Check.
Gold and silver could definitely be next.
Troy,
ReplyDeleteGasoline burns. In theory we could actually run out someday. Just sayin.
I wish it was possible to edit comments. I'd like to add an 'r' to speculatos, lol.
ReplyDeleteAlll hail King Speculatos!
Natural gas burns too. Let's try that.
ReplyDeleteGold Priced in Natural Gas (July 2013 Dollars
Yup, given the recycle rate, unlike fuels, gold is normally not actually consumed, only employed for a particular use.
ReplyDeleteThe various gold stockpiles are in fact an alternate source of supply, with a current production cost of pennies per ounce.
Well, maybe $10 or $20, given administrative overheads etc.
Troy,
ReplyDeleteI can speak from personal experience that a 1-oz gold coin feels really good in the hands. No denying it.
I can also speak from personal experience that a Les Paul guitar feels even nicer in the hands and there would still be plenty of money left over to buy a PS3 and a Rocksmith game.
To each his own. ;)
The various gold stockpiles are in fact an alternate source of supply, with a current production cost of pennies per ounce.
ReplyDeleteSoooooo... why then isn't it $20, $10 or less? Until you guys comprehend the innately human attraction to gold you'll never "get it".
I know, I know... it's not logical, it's psychological. But hey, that's humanity.
TJandTheBear,
ReplyDeleteI got it from 2004 to 2006 and then opted not to "get it" any longer.
That's why I'm the worst kind of heretic. Once a believer (at a lower price) but no longer a believer (at a higher price). ;)
Human psychology never changes... hasn't for all of human history. Can't stop believing in that.
ReplyDeletehttp://www.safehaven.com/article/30853/silver-the-100-history
ReplyDeleteTJandTheBear,
ReplyDeleteHaven't stopped believing in bubbles. Just don't prefer to ride them long.
Anonymous,
ReplyDeleteCherry picking the starting point to the depths of the Great depression and the ending point to 10+ years in a bull market does distort the trend a bit, especially when compared to how buried cash has done.
Nobody here is recommending buried cash as a store of value for the next 100 years.
600 Years of Silver Prices
Ouch.