The worries of a dollar thinker

valuecreator

valuecreator

Well-Known Member
Silver Stacker
We can't count how many articles we saw today, bemoaning gold going down. The price action is bad for gold (whatever that means). China under-reported their gold holdings. No, China doesn't care about gold. No they want the price to go down so they can buy it cheap.

No, they want to convince the IMF to include the yuan (which has capital controls, by the way) into the SDR basket. No, China really intends to revalue gold (whatever that means). This is your brain on dollars. Any questions?

This is the worry of a dollar thinker. A dollar thinker buys gold for one reason: to sell it. Either he sells it when the price goes up, and he gets more dollars than he paid. Or else he sells it for less, and takes a loss. But sell it, he must. Sell it, he plans. And his sole concern is the price of gold.

We would suggest that you, dear reader, think in gold terms. The dollar distorts prices, balance sheets, business plansand thinking. Here is a graph showing the gold view of the dollar.
Click to expand...

http://www.acting-man.com/?p=38731
 
It started off good....but I stopped reading here "We suggest that you ought to be concerned with the scarcity of gold."
There is plenty of gold.
 
Everyone needs to be concerned with the dollar price. If you want more gold then you need to figure out the best time to turn your fiat into metal. If you want to use gold as a savings toolb and you need to get some money together then you need yuk know when the price will be good for you. If you want to trade in some gold for other assets or investments like silver or property or a shipping container full of those cats that wave I'm Chinese restaurants then you need to know the dollar value.

I'd be happy to return to a gold standard or a two speed standard where gold was treated as a second currency and you could pay in either dollars or one of the the money metals, but that's not anywhere near remotely possible. In the meantime I'm not going to lament the fact that I can't pay for a big mac and fries with a half ounce lunar goat and I'm going to be watching the dollar action in 2 currencies to try to maximize the ounces in my stack,
 
This is the worry of a dollar thinker. A dollar thinker buys gold for one reason: to sell it. Either he sells it when the price goes up, and he gets more dollars than he paid. Or else he sells it for less, and takes a loss. But sell it, he must. Sell it, he plans. And his sole concern is the price of gold.

We would suggest that you, dear reader, think in gold terms. The dollar distorts prices, balance sheets, business plansand thinking. Here is a graph showing the gold view of the dollar.
Click to expand...
Load of bull shyte.
Just another permabull trying to reason with themselves why they still aren't wrong.
 
The obvious problem is that PMs need to be converted to dollars before being spent. Even if you could bypass the conversion to dollars (i.e. direct trade), you'd still need to value the exchange in dollars.
 
A dollar thinker buys gold for one reason: to sell it.
Click to expand...

So what are you getting gold for exactly? To look at? To stroke at night? To throw off the side of your boat as you're having an accident?

One way or another, you're selling it. Whether that's selling it for dollars or selling it to someone for goods that he provides you.

Don't try and fool yourself.
 
Question: So what are you getting gold for exactly? To look at? To stroke at night? To throw off the side of your boat as you're having an accident?

Answer: To use as Money (but not currency).

Now I ask you: You do realize that what you call "money" is a depreciating asset?

Because me, I use to exchange $70 for a 10oz silver bar. $650 for a 100oz silver bar.

So you use $ to mesure wealth. Haha.

Gold an Silver are appreciating assets (in term of most other assets, including your "money").

By design over time.
 
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