Friday I put up a post recently pointing out that the dollar is likely to strengthen strongly just prior to collapse. Translated into gold-bug terms, that means that the ‘price of Gold’ will tumble. That should not be translated as meaning that it is smart to hang on to your dollars until that point when you can sell you them for a larger amount of Gold. Who knows how … [Read more...]
Dollar Price of Gold Will Fall
Tuesday For the reasons pointed out in a previous post, a large fall in the dollar price of Gold would signify the point where the debt problem has become so pressing that people have had to use their Gold to buy dollars in order to stave off personal ruin for a while longer. How perverse is that? At the very point where they most need the stability of Gold’s value, it … [Read more...]
Debt Service
Wednesday Keith Weiner makes the interesting point that the dollar has value because, and only because, of the necessity to service debt. “The dollar does not have value because of some fragile, collective faith. The dollar has value because of the struggles of the debtors. What are you willing to sell, in order to avoid foreclosure on your house, repossession of your … [Read more...]
So Why Possess Gold and/or Silver?
Sunday Those who claim that the paper in your wallet/purse is worthless, are exaggerating the case. As long as it can still be exchanged for goods, then it obviously is not worthless. Let’s look at what the real problems are. Paper ‘money’, widely known as fiat, has a value that is very unstable. A long-term graph will show clearly the decline in value of all fiats. I … [Read more...]
POG Agog
Friday There is a plethora of articles on the many Gold websites about how Gold and silver are about to take off – by which, they mean, about to go up as measured in dollars or some other currency. It is unwise to sit agog, waiting for this to happen. Gold, when monetised as a known weight and fineness, has a totally unique stability of value and is hence the measure … [Read more...]