According to some dipstick reporter on ABC radio just now (bear with me... I'm incredulous as I type... still stunned lol!): RBA Govenor says: 'gold has dropped because it isn't actually that valuable' Girly reporter then states: 'The reason people think gold is valuable is because they think other people think it's valuable' UH?!?!?! :/
you know what thought thought. Thought thought his arse was hanging out of bed so he got out to tuck it in.
GP, I know you're snowed under with mini-pelican puke and other requests (not to mention checking out those cabinets out the back for more silver and gold to sell) but could we please have a dropping jaw icon for occasions like this? Its only valuable because other people think its valuable? DUH! Its hardly valuable because everyone else thinks its rubbish, now is it, dopey? Honestly, where the hell do they get them?
Great quote, its similar to this one Do not argue with an idiot. He will drag you down to his level and beat you with experience Mark Twain
You mean there's only 6 times the amount of currency in circulation today than there was in 1990. Hmmm ... using I=(FV/PV)^1/n - 1 , gives an average annualised rate of money printing of about 9%. Which means that if I had $100,000 in 1990, I would need at least $725,000 today to have the same share of the common wealth I had in 1990. Or, if I was earning the average wage in 1990 of 28,038 p.a. I would have to be earning $203,196 p.a. today to be keeping pace with the RBA's money printing. Whereas, the average Australian wage is actually $72,436. as of November 2012. http://www.abs.gov.au/ausstats/[email protected]/Lookup/6302.0main+features4Nov 2012 So, where is the other $130,760 p.a. that should be the average Australian's share of the money pool gone? Here's an interesting fact. The average Melbourne House price in 1990 was $131,000 which would have to be about $950,781 today to keep pace with the RBA. (http://www.econ.mq.edu.au/Econ_docs/research_papers2/2004_research_papers/Abelson_9_04.pdf)
Similarly the gold surrendered to the US Govt by the public in April 1933 at US$24/oz would now buy just US$1.44's worth of goods... whereas if those poor suckers had kept their gold (which many of course did)... they'd have multiplied the original value of their stash (inflation, investment opportunity costs etc not factored in of course) by (even at near today's gold spot...) around 60-fold... so I guess the RBA govenor must be, er, right...
OMG that's what happens when everything is based on paper you are always looking for what it's real value is. But when you have something with real value it's hard to comprehend after being brainwashed by paper
My God that's profound... I also nominate this candidate for either post of RBA Govenor or trainee ABC radio finance news (w)anchor - same kind of league... [youtube]http://www.youtube.com/watch?v=lj3iNxZ8Dww[/youtube]
Screw the journalists. A 12 year old can do better than that. [youtube]http://www.youtube.com/watch?v=m4dGx_cahlk[/youtube]
At least the RBA doesn't need to worry about the price of gold falling since Costello sold most of it
This piece is absolutely LITTERED with lies, blatant misinformation and mistruths... ""Gold often has a high price because people believe that other people think it's worth a lot," he warned. AND WHY IS THAT? LOOK AT THE 15 YEAR GRAPH DUMMY... AND DON'T QUOTE 'THE 12 YEAR BULL MARKET IN GOLD' AT ME OR I'LL PUNCH YOU "When you describe other markets like that, the word bubble often gets rolled out. I'm not going to say that here, you can draw your own conclusions." SINCE WHEN DID THE APPRECIATION OF PRECIOUS METALS OVER THE LAST 15-20 BEHAVE IN A PURELY LINEAR FASHION? Gold prices fell 9 per cent overnight to $US1,345 an ounce, although it had recovered slightly to $US1,364 an ounce by 4:00pm (AEDT). The price of the precious metal has slipped as much as 14 per cent in just two days, and is well off its peak of $US1,920 an ounce posted in 2011. AND? At the beginning of the 1970s, the gold rate was at US$ 35. Ten years later the price stood at US$ 870 per ounce. This is a percentage gain of 2,485%. In contrast, during the same time the Dow Jones Industrial Average increased only from 809 to 839 points. This represents a total gain of 3.7%; not per year, but for the whole decade. Despite the steep fall, many analysts warn the gold price has further to slide. SAME THING HAPPENED IN 1974 FOR 6-8 MONTHS... THEN EXPLODED UPWARDS TOWARDS ANOTHER BUST CYCLE IN 1982... A senior analyst at Thomson Reuters, John Noonan, says investors no longer see gold as a "safe" investment. SO INVESTORS SEE DEFAULT CURRENCIES LIKE THE US$, GBP, EURO & YEN AS 'SAFE' INVESTMENTS? OR EQUITIES? PLEASE... SPARE ME... "What we're looking at is a move towards $US1,200. I think that could happen quite easily in the short term and, maybe in the longer term, we could see a pretty strong retracement back to $US1,000 or just under $US1,000," he warned. GIVEN THE IMMINENT DEFAULT OF COMEX, LBMA ET AL... WHAT A BETTER WAY TO CLEAR SHORTS AND RESTOCK PHYZZ AT BARGAIN PRICES... "What we're seeing right now is that this aura of gold as the safe place to have your money is being blown apart." WASN'T THAT WHAT QE WAS SUPPOSED TO DO? OR DOES HE THINK THAT A NEAR 50% DECLINE OF STERLING, 40% DECLINE IN THE US$ SINCE 2007 WAS SIMPLY A COINCIDENCE? Mr Noonan says investors were pitched gold in the wake of the global financial crisis as a hedge against inflation, which is a threat that has not materialised so far. OFFICIAL GOVERNMENT INFLATION FIGURES, AS WE ALL KNOW, WHETHER HERE, IN US, EUROPE OR ANYWHERE WESTERN ECONOMIES ARE IN DECLINE - ARE NEVER ACCURATE, MASK INFLATED MONEY SUPPLY AND BEAR LITTLE RELATION TO THE PURCHASING POWER OF THE $ IN YOUR POCKET "Even though there's been attempts to weaken the currency through quantitative easing, we haven't seen really that much volatility in the foreign exchange markets," he observed. WHAT DID I SAY ABOUT THE DECLINE OF STERLING & USD? ER, HELLLOOOOOOOO! "So I think some of the fear that the value of the dollar is going to be destroyed because of what the Fed was doing, I think some of those fears were overblown - we haven't seen inflation and I think for gold to come back again were going to need to see signs of inflation." SO YOU'RE SAYING THAT EXPONENTIAL DERIVATIVES MARKETS REALLY HAVE HAD NO EFFECT ON ANYTHING, EVERYTHING'S ACTUALLY ALRIGHT IN THE WORLD, THE EUROPEAN, US DEBT CRISES AREN'T REALLY SO MUCH TO WORRY ABOUT AND THE IMPENDING PROPERTY CRASH IN CHINA/ASIA COUNTS FOR LITTLE? WHY THEN LAST YEAR WHEN I WAS IN LONDON DID I SEE GREEKS HANDING OVER CARRIER BAGS FULL OF EUROS TO BUY GOLD - $30K, $40K IN CASH... WHAT DID THEY (OR DO THEY) KNOW THAT YOU DON'T CHUM? I BET THOSE POOR BA5TARDS DIDN'T EXPECT TO GET 40% OF THEIR CASH ON DEPOSIT SEQUESTED EITHER... SO AS YOU SAY... 'NOTHING TO SEE HERE! NOTHING TO SEE HERE!' - FRIKKIN' MUPPET... The Chairman of Perth broking house Hartleys, John Featherby, does expect to see a rebound in the gold price, but says some Australian mines will be unviable until it does. AT ANYTHING UNDER $1150/OZ PRODUCTION COST 50% OF ALL AUSSIE GOLD MINES ARE 'UNVIABLE' - AND THAT'S A FACT... "What you will see are the marginal operations very definitely will come under scrutiny," he cautioned. "Indeed you're already seeing that, and some of them are being placed on care and maintenance basis, but I'm reasonably optimistic that gold, as an industry which has been a cornerstone of the Australian economy, will continue to play its part." YES, THAT'S RIGHT - IT WILL - IN PRODUCING CHEAP GOLD TEMPORARILY FOR THE MAJOR BANKS (GOLDMANS, JP MORGAN, THE ECB, THE US FED, CITI, DB, ABN AMRO ET AL) - OH, AND GIVE CHINA AND INDIA SOMETHING TO GET RID OF THOSE QUADRILLIONS OF DODGY US$'s ON... WHICH IS WHY THEY'RE BUYING ALL THAT THEY CAN RIGHT NOW... CHINA ADDED 400 TONNES OF REAL GOLD TO ITS RESERVES IN THE LAST 30 DAYS IF YOU DIDN'T KNOW... AND AT TIMES LIKE THIS THEY'RE MOPPING-UP ANYTHING THAT COMES ONTO THE MARKETS... AND AVOIDING PAPER CONTRACTS LIKE THE PLAGUE... PFFFFFFFFFFFF!
Another newsreporter yesterday said she was wearing a very expensive gold shirt that was made for a wealthy Indian gentleman and cost $250,000. She then said in front of the camera that the shirt she was wearing weighed 300 KILOGRAMS !!. Obviously she never did kiddies' maths at school. Also if the gold content was 300 grams only then I cannot see how this could be described as a PM investment either.
