Gold price irrelevant?

Discussion in 'Gold' started by SteveS, Oct 21, 2016.

  1. SteveS

    SteveS Member

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    I read this just now, on 'Moneycrashers.com' (whoever they are).

    (Gold is good because it....):

    "Holds its value. Gold tends to maintain its value over time. Economists argue that even the price of gold is not indicative of its value. That is, even if the price decreases, the underlying value of gold does not change much. This is largely because there is a fixed quantity of gold due to the fact that it is a commodity, whereas the U.S. dollar, which is a form of fiat currency, holds no inherent value."

    Has that been the rule during tough times? Does gold fetch a better price than the 'official' price?

    This seems like fairly level-headed advice to me:

    http://www.moneycrashers.com/buying-gold-good-investment/
     
  2. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    It sounds like the sort of thing a pumper would say to be honest.

    The value of something is what someone is prepared to pay for it - which is basically spot plus or minus premium.

    Some of the hard core gold bugs try and think of their wealth in terms of gold being fixed and the value of fiat is what fluctuates. Whatever floats the boat I suppose, but I think that line of thinking is really just for zealots.

    *dons flame suit*
     
  3. SteveS

    SteveS Member

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    I agree, but the site doesn't appear to have any particular affinity to PMs, being mostly focused on equities. That said, the article in question could easily be a 'secretly sponsored' editorial.
     
  4. James

    James Member

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    Almost no-one mentions another aspect of gold which may come to the fore. Personally controlled, high value density and easily concealed to avoid theft. What other asset has this (except maybe diamonds)? Most important when assets start being confiscated/destroyed. Cyprus (and others) had bank account ripoffs, Zimbabwe stole private businesses. Realestate prices have popped in many places in the late 2000's. Asset destruction happen when the economy is on the rocks. Discreetly valuable, an underpriced value, gold does best ? Buy the gold before that angle gets 'priced in' ?
     
  5. Peter

    Peter Well-Known Member

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    In vietnam, gold is worth more than its official" value.
     

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