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[currencia]

Here is a link on how much gold has been mined in the last 5,000 years, who has it, and what it is good for.

www.financialsense.com/fsu/editorials/tustain/2004/0315.html

Didn't have time to read all of it, but the kernals I read were interesting and thought provoking.

[novice]

Originally posted by currencia
Here is a link on how much gold has been mined in the last 5,000 years, who has it, and what it is good for.

www.financialsense.com/fsu/editorials/tustain/2004/0315.html

Didn't have time to read all of it, but the kernals I read were interesting and thought provoking.

"Here is a link on how much gold has been mined in the last 5,000 years"

Not much really

"who has it"

Supposedly central banks. But who would know? A lot of central bank gold has been sold or leased out and is now jewellery around people's necks.

"what it is good for"

Not much really.

It has limited industrial uses due to scarcity.

It’s largely chemically inert and twinkles in light. But people, maybe ignorant cavemen types seem to really desire it for these qualities. Its inertness makes it a good store of value since its can't degrade or whether or spoil or most importantly be created and because enough people value it for whatever reason (maybe even its scarcity?) it makes a good (not perfect, not the best but a good) medium of exchange amongst thoses people.

[currencia]

Some of the articles give an additional view.

5,000 years of worldwide mining has produced enough gold to but fill the cubic size of one lousy tennis court.

Just the industrial demand for gold, ie electronic parts, exceeds new annual supply by a substantial amount.

The cost to mine one ounce of gold is more than $300 an ounce.

The US stockpile of gold wouldn't fill one bedroom in your condo.
Even less for Britian and Canada. A small country in South America did by one truckload recently.

It would take 44 times the entire world supply of gold to back the amount of dollars the USA has printed.

There are enough articles at this site to keep one reading for weeks.

[currencia]

It appears that if gold were to be used to back the currency of all leading world countries (or just the USA), the price of electronic goods and other products would force them to be extinct. (There goes your computer.) There would be no gold jewelry. The entire value of a country could be taken away in a shoe box. And, the price of gold would be something like ten or twenty thousand dollars an ounce.

It has been almost a half century since gold no back the currency of the many. There appears to be no turning back. The continued conversation about it being used to back a world currency seems to make not one ounce of sense.

[novice]

I agree it would be impossible for any government to redeem its currency in gold or anything else ever again.

But nations may choose to back (i.e. hold reserves) of gold rather than say US Dollars or Euro's ect or its own government debt to give their currencies and economies strength. Argentina has done this of late.

Or in times of crisis (maybe hyperinflation?) people may simply choose private gold over public money. At least as a store of value if not as a medium of exchange or a unit of account.

But even if none of these things happen the supply aspects of gold (i.e. scare) and the supply aspects of the US Dollar, Euro ect (i.e. plentiful) creates a bullish (inflationary) environment for gold.

[currencia]

With the production cost of gold at $300 and rising sharply as every new ounce is more expensive to find and produce, selling gold in the marketplace at $400 is rather silly indeed. It appears the price ought be $1,000 an ounce or more. Of course, it likely will go the way of daimonds, ie... made in a test tube. I am sure I'll sooner than later run across such article. If it can be done with diamonds, it likely can be done with gold. Of course, that would make it just as artificial as the buck.

Yes, Argentina is the country that bought a truckload! A few years back, I talked to some Argentinians who were on holiday in Costa Rica. Their economy was a wreck and gone amuk, with no money enough to go around. It took a pile of money larger than a loaf of bread to buy a loaf of bread apparently. I personally cannot see how a few Argentinians having a few specs of gold dust in your pocket would have put them in a senior position to eat. But, somebody out there must think so.

If gold is being touted and has been touted by many as the be it all answer for a safe harbor, just how come is it that it doesn't trade for hardly anymore than its cost of production? At today's fuel cost, it wouldn't pay to haul it.

Much of the touting is for the buying of gold mining company stock certificates. Of course that is not the same as gold in the dresser drawer. Gold could be $10,000 an ounce and the certificate worthless. In many cases, that is exactly what is going on. Reminds me of the TV ads and scare tactics used to peddle rare coins by a bunch of hucksters.

Maybe assay offices will re-appear across the country to charge a fee to inspect and grade the value of the rare gold being exchanged for bread. I can't quite envision that happening again. But, I suppose some store keepers could. After all, those same storekeepers who assayed gold and sold picks & shovels were mostly the only one's who ever made a profit off of gold.

Why, I can envision selling a desktop gold producing machine that is a "total system" for cranking out and assaying gold powder, one fleck at a time 24/7. Why just think about the possibilities. Juiceman Popeil, move over! Used one's could be sold on Ebay. For only $250,000 we will throw in these 5 attachments to the next 100 purchasers only if ya call in with a credit card to the number at the bottom of your screen in the next ten minutes. Then, you can have not one and not three, but seven ways to produce gold, right there on your own desktop in the privacy of your own home, starting today. Why just think of the security you will have. No more relying upon a job. No more worry of whether somebodies currency is gold backed or not. You can own anything and go anyplace anytime you want as long as you have this gold and my exclusive gold machine.

This almost sounds like these new auto trade signal machines that sell for $49 per month right here on Moneytec. Why they just keep on scalping out small but steady pips day in and day out. For $149 per month, we will throw in not one pair and not two pair, but three pairs a trading if you act now and dial this website or call this number. Ya don't even have to buy a machine. Ya see we own the machine. It spits out results based upon an exclusive, secret, proprietary thing called an algorythm to take advantage of the built in inconsistencies in the market. It works for you 24/7 while you sleep or while you play. Get it today.

[novice]

Originally posted by currencia
Of course, it likely will go the way of daimonds, ie... made in a test tube. I am sure I'll sooner than later run across such article. If it can be done with diamonds, it likely can be done with gold. Of course, that would make it just as artificial as the buck.

Are you expecting a break through in either nuclear fusion or nuclear fission that would make alchemy possible? Turning graphite (carbon) into diamonds (another form of carbon) is a little bit easier!!! than turning either a lighter element (fusion) or a heaver element (fission) into gold.

Your Argentine friends who could afford to have a holiday in Costa Rica most likely would have had their savings not in Pesos. Instead they would have had their savings in maybe US Dollars, which in comparison to the Pesos held its value and afforded them consumption and wealth that they could not have had if they solely used Pesos. It’s the same principle with gold if other currencies fall victim to excess government debt and excess money creation.

Anyway lets agree to disagree.