"Everything you need to know about gold"
GOLD CONVERTIBILITY IS THE KEY
All the talk about BRICS countries possible issuance (not anytime soon) of a gold-backed currency, and most of the analysis, misses a key point.
The success of any fiat currency or real money substitute (in other words, anything other than gold itself as the medium of exchange) depends on its convertibility into gold – on demand.
GOLD IS PRICELESS
Over 5000 years of recorded history, gold has proven itself to be real money. Gold’s value is in its use as money. That value is unquestioned.
Whatever arguments are put forth against gold’s use as money are attempts by government to free itself from the restrictions that gold imposes. Gold, when used properly, limits the ability of government to inflate and debase its money.
INVESTOR EXPECTATIONS VERSUS FED
Quite a few people are convinced that they know what the Fed will do next, and why. How do they know? Is it really that obvious?
There are more questions to consider, too. Will the effects of continued actions, or changes for any reasons, achieve the desired results? If they don’t, what comes after that?
PRICE OF GOLD IS NOT ABOUT GOLD
Attempts to analyze and value gold are superfluous. Gold’s value – its use as money – has already been established. That value is constant and unquestioned.
The price of gold does not tell us anything about gold or its value. The gold price tells us only how much purchasing power the U.S. dollar has lost – nothing else.
GOLD AT $4000?
For that to happen will require something almost unbelievable – if you expect gold to be at $4000 anytime soon, that is. The problem with most predictions for higher gold prices is that they fail to account for the financial and economic turmoil that would accompany those higher prices.
What is so unbelievable that would need to happen for gold to go to $4000 oz.?
(also listen to The Prostitution Of Gold)
Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED!
PAYMENT FOR SERVICES RENDERED
The gold market has become a social gathering place for an odd combination of participants. Those participants range from the gullible and the disillusioned to those seeking the next big thing.
Permeating the atmosphere surrounding the commotion are false fundamentals and faulty logic. Fundamental analysis, or what passes for it, gets distorted and perverted beyond recognition.
GOLD’S DECEPTIVE NEW HIGHS (audio version)
The latest gold analyses have shifted to a more accommodative nature regarding the yellow metal’s failure to extend its gains after breaking above $2000 for the fourth consecutive year. Here is a chart (source) that depicts what most analysts and investors are seeing…
GOLD BULLS TOO PRICE-DEPENDENT?
Theoretically, a higher price can indicate an increase in value for a good, a service, a stock, etc. That does not mean that a higher price is always indicative of an increase in value.
On occasion, the higher price tells us something else. For example, most people are quite sensitive to the higher prices they pay for groceries and gasoline. Since the forced shutdown of the economy in response to Covid, prices for food and energy have risen along with most other goods and services.