Gold and aggregate demand.

Discussion in 'Economics' started by morganist, Jun 10, 2011.

  1. Gold is a bubble. It will much more likely see 500 before it sees 2500.
  2. Larson

    Larson Guest

    Yeah right. When the US gov't gets their finances back to pre-1999
  3. The over issuance of dollars have increased the real value of gold somewhat.

    However, during these bad times many investors have protected their dollars in gold.

    When the economy gets better and other investment opportunities arise the real value of gold will decrease somewhat.

    I believe gold is overpriced due to the present temporary economic conditions
  4. It's not temporary. Currency collapse is inevitable.
  5. "You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"

    Warren Buffett
  6. Larson

    Larson Guest

    The problem with this analysis is gold becomes a currency in times like these. It is currently being valued in relation to increasingly worthless fiat currency. Restore confidence in those currencies and gold will fall. What are the odds of this occurring in the foreseeable future? I do not understand why these posts are continually harped on as monetary conditions deteriorate.
  7. Times like what? Do you see a lot of people buying groceries in gold nuggets? Where in the world are they using gold as a currency?
  8. No , what Buffet is saying is that Gold is way overvalued in relation to other physical assets such as land and the stock market. Why aren't gold bugs buying land? "because it is different this time..." "real estate prices have never gone down." It is a classic bubble.
  9. Larson

    Larson Guest

    And you are using the same old wore out argument as Buffet.
    Restore confidence in the reserve currency and gold will fall.
    #10     Jun 10, 2011