Minyan Mailbag - Gold, Money & Perception
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
First, let me state that I am in complete agreement with you about the long term prospects of gold. That being said, it must also be stated that, from a philosophical perspective, gold is no more "real money" than the greenback. It can be argued that it is a better form of currency because its supply is limited and therefore more stable, but in the end the value of gold is determined by market participants just like the dollar and it is possible that the participants could one day see no value in gold.
Minyan James Karn
You are correct that maybe no one will want gold either. Fair call too, but I go with history and factual data rather than uncertainty. 5000 years of history as a means of exchange will do me. Gold's properties will ensure it is highly prized. If it gets cheap enough because it isn't valued, my gold pots and pans will be great as their conductivity will cook my eggs and bacon in 2 seconds flat.
Value is relative. It's funny, an acquaintance tells me that gold is still cheaper than marijuana, per ounce, in the USA. Can't verify the accuracy of such a statement but if it's true it certainly says something. I know which natural resource I want for my money.
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