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"Gold" in the USA is for suckers. Has anybody noticed that in recent years the "gold" jewelry has made a shift from 14ct or 18ct to 10ct or 14 ct? People see the hoopla about gold, run to the nearest "we buy your gold" shop because Glenn Beck told them to... and come home disappointed for not getting the price they were told they would. I met one such genius recently.
"Gold" in the USA is for suckers. Has anybody noticed that in recent years the "gold" jewelry has made a shift from 14ct or 18ct to 10ct or 14 ct? People see the hoopla about gold, run to the nearest "we buy your gold" shop because Glenn Beck told them to... and come home disappointed for not getting the price they were told they would. I met one such genius recently.
This has been common for years. The dudes wearing the shiny bling necklaces and bracelets in 10Kt gold think they're making a statement until the day comes they try to realize on their investment and someone has to tell them the stuff is worth less than the tires on their Honda Civic
Seeing any 22 carat gold jewellery worn is rare 'cause it looks like crap unless it's kept cleaned and polished regularly. It's very weight, when worn in an imposing enough quantity so as to impress anyone, would have you using a wheelchair to get around in!
The creation of bartering began the value of any asset with worth. This started eon's ago with people of an aggrarian society agreeing to allow farmer Jed next door to use 5 or 6 of your acres to plant corn on if he agreed to providing you with 20 bundles of split cedar shakes for your new barn roof. This agreement would run for a term to equalize worth of service provided.
Gold has no instant monetary value unless you find someone to actually exchange money for it. Pawn broker, gold dealer, jeweller etc.. Your local bank branch probaly won't even touch it unless they're gold certificates.
HOWEVER; using the actual worth of the gold to create equity through some other means is where the "currency" asset of gold comes into play.
eg: I have 200lbs of 22 carat ingots in my basement and I want to build a big barn on the back forty. Rather than attach my property through a mortgage, I make a deal with a contractor to pay him on a time system guaranteed by a portion of that gold having been certified and held in "trust' through a surety agreement. I default on my payments and him and his son show up with their shot-gun toting nephew's as guards to carry off the agreed-to number of ingots.
Seeing any 22 carat gold jewellery worn is rare 'cause it looks like crap unless it's kept cleaned and polished regularly. It's very weight, when worn in an imposing enough quantity so as to impress anyone, would have you using a wheelchair to get around in!
I don't know why anybody would make that argument. Pretty much every jewelry made of gold I've bought over the years has to have a minimum of 22 ct. I wore a 22ct chain for years, complete with a "cross" which is actually 23ct. It is rare to find a shop selling such jewelry though... usually limited to Asian/Indian jewelry stores, and those occasional international trips.
I doubt people will be so foolish as to turn it in again. The disgust level with Congress and the POTUS is too high. Some people actually learn from history as they watched TARP, GM, Solyndra and MF Global where taxpayers, investors, and depositors were all sacrificed on the altar of corporate/donor paybacks.
As most people have pointed out, this topic is idiotic. Gold has inherent value, just like land and anything else people want. It doesn't matter if the government hasn't stamped a "$50" mark on it. Schiff is correct.
Money doesn't have to be tied to anything of value. It is a much more abstract concept.
It may not have to, but it needs to if the monetary system is to be honest and currency stable.
What we are seeing today is a digital monetary system tied to valueless derivatives trades amongst world banks. When you attempt to build a house without proper foundation, footings and adequately supported trusses, it will fall in upon itself.
We are witnessing this failure in Western economies as their currencies and monetary systems in the eurozone and the US are without foundation. This in turn also introduces economic destabilization among their trading partners and has devistating inflationary effects on third world countries dependent upon the world reserve currency to purchase energy and food (yet another destabilizing force).
Throughout modern history gold has proven to be that value standard which stabilized world currencies and markets. Leaving that standard has proven to be a mistake, IMO. YMMV.
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