RE: FYI ... gold priceMr. CoastalTrader,
Gold price may more than double to$3,000 (£2,080) per ounce over the next five years, claim fund managers,citing record inflows into the yellow metal this week. The inflowresulted after speculations that American, British and other Governmentshad intentions to inflate their way in a bid to lower excessive debt tosome extent.
I wish the "news" would get it right for once. Gold is NOT going up in price. It never has (if you exclude brief periods of time where the gold price was driven higher by speculators like in 1980 and today). It is the fiat currencies such as the U.S.$ that are going DOWN in value. For the past 2 thousand years gold has always bought the same amount of commodities. For example, two thousand years ago an ounce of gold would have bought 500 loaves of bread. Today it buys roughly the same number of loaves of bread. If you were a merchant two thousand years ago and sold your 500 loaves of bread for 1 ounce of gold and you buried it in your back yard, and today your great-great-great-great-great....grandchild dug up your gold bar, he could buy 500 loaves of bread with that same ounce of gold. Is he any further ahead? Of course not. Gold does not gain in value. It's value is constant through the millennia.
People think the price of gold is going up when in fact the dollars in their wallet have been going down in value. But reporters never will say that. I wonder why?
If gold does "go up" to $3,000/oz then it also means the value of the dollar has dropped by 60%. People think they are going to get rich by hoarding gold when in fact they are only preserving the current buying power of the dollar. If you want to buy 500 loaves of bread 1 year or 1 thousand years in the future, buy 1 ounce of gold and you will be able to do just that. But will you get rich doing that? Not a chance. :(
Wiz