Probably one of the worst times in history to buy gold.That is all well and good Tubercle, but when the pile of paper money is larger than the loaf of bread it buys,
I'll leave out the gory details, but at your leasure hours check out the average ROI vs the last 3 years. Nothing that good last. There will be blood letting and nashing of teeth.
The value of gold (or anything else) is determined by the availability of a buyer at that price who is both willing and able to make the transfer for something of equal or greater value. For example, just about everyone who wants (willing) and has the money to buy (able) gold already has. Its priced out of reach of the average person. Now the owners have no one to sell it to except each other.
See also: Housing bubble
I will be willing to trade my hog or cow or eggs or ahem * beer for a slivver or two of gold....
when that paper ain't carrying much value unless you are burning it for comfort on a -40*f winter night....What good is that, quote" money to buy (able)" for anything?
I agree totally. Paper money only has value by fiat. Gold has value by utility; so does your hogs & chickens. So does your labor. I might even trade you a sixpack for a wheelbarrow of worthless paper money to keep from freezing to death.
The point I was making is that worth is a fleeting thing. Only the buyer and seller can determine that. That is why an auction is the purest form of capitalism. The buyer won't pay more than they are willing or able and the seller won't accept anything less likewise. For example, I have a fiddle that belonged to my great grandfather passed down through my grandfather and then my dad to me. Its worth ~$1000 bucks on the used instrument market. I wouldn't take 100 times that because I have already promised it to my grandson.
At this point in time, the gold is more valuable to the current owners than to those that haven't bother to try and buy any - like me. I can't eat gold.
I know none of this makes sense....I have a hard time explaining it.