RE:RE:RE:RE:STUNNING NEWS - MARK THE DATE!Mineshack wrote: ValuePro. I respectfully suggest you reconsider. If the world returns to demanding gold for payment, the 1930's may become very comparable.
"Back then, POG was dictated by the government." - I must disagree. It was only dollar price the US government dictated. Same as now.
"Changing the "official" value of gold by nearly 70 percent caused a boom in gold mining stocks back then." - Once again, the value of gold did not change. The boom Homestake experienced was due to world demand for gold and the depreciating value of dollars the company traded in.
"It also helped to finance the US government during the Great Depression." - Actually, it was the confiscation of the peoples gold that served the government as income.
ValuePro wrote:
I appreciate the thought, but making comparisons to the price of gold and gold stocks in the 1930s is a useless endeavor.
Back then, POG was dictated by the government. But they then confiscated all the gold in circulation and made it illegal to use within the United States. Once accomplishing that, they raised the official exchange rate from $20.67 to $35.00 for international trading purposes, effectively stealing the difference from the public.
Changing the "official" value of gold by nearly 70 percent caused a boom in gold mining stocks back then. It also helped to finance the US government during the Great Depression.
Let's hope that free markets in gold and silver will prevail in the coming crisis as we can count on government to get anything right.
I also can't see the $US dropping so much with respect to other currencies . They are all bad. The $US dollar is simply the largest horse in the glue factory, so it's demise will unlikely be the first.
Now, with regards to the $US dropping with respect to PMs: That's another story completely. That is why we are all invested in this sector in the long run. The Caracas Syndrome has no cure.
Tx