I've heard it said many times that gold doesn't really increase in value. It's the dollar decreasing in value in relation to the gold. Well I'm sure that's true to a great extent but it doesn't explain the amount gold fluctuates based on demand. If demand increases, gold must increase in price like any commodity. Am I missing something?
jeff fogel:Am I missing something?
I don't think so....
Where there is no property there is no justice; a proposition as certain as any demonstration in Euclid
Fools! not to see that what they madly desire would be a calamity to them as no hands but their own could bring
The left out the "All other things being equal part" or from college physics: "All other effects being minor." Clearly the run up in the price of gold recently is a good example of the "All other effects being minor." as world central banks have literally entered trillions of dollars in new currency.
So the main engine of the recent run up is central banks everywhere printing money? Other things, such as demand and supply being pretty much as they always have been?
jeff fogel: So the main engine of the recent run up is central banks everywhere printing money? Other things, such as demand and supply being pretty much as they always have been?
Maybe it's those "animal spirits" that can't make up their mind.
To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process. Rabbi Lapin: "Let's make bricks!" Stephan Kinsella: "Say you and I both want to make a German chocolate cake."
does gold operate any differently than any other commodity these days...since its money usage is negligible?
if gold was money, raw mined gold would be priced in moneyd-gold...which used to be the dollar (1/20 oz.).
i believe the dollar doesnt mean that now.
if a new mine was found that yielded gold from the earth easier than currently operating mines (geological factors, etc) demand could increase but price remain nearly stable??