I agree but Forex transactions are some $1100 Trillion per year, derivatives some $700 Trillion, USA real estates are $23 Trillion so world real estates must be $400 Trillion to $500 Trillion (not sure). There are some 1 billion automobiles/vehicles in the world. Let us assume each vehicle is worth $2000 so it $2 Trillion for vehicles. Now I am completely confused.
You make a perfect example. Can't take criticism. Yes, i'm sick of the idiots on this site. You and bearice are added the the list. I'm on here because I trade. Not to analyze the physical differences between steel and gold. I think metallurgist.com is a better site for you guys. In fact, You guys should stick to the yahoo boards. We know the gold story. We've all heard it before. Yes, you continue to make that VERY clear.
I have set everybody's soul on fire and athlonmank8 on big fire. Elitetrader will remember bearice for 1000 years. Rest in peace.
First...forex wont exist if we go to gold. Second,forex transactions are so high because they are traded often and with leverage. I'll try to explain it another way. A typical daytrader has a $25,000 account. With a 2-1 margin he will typically do $250 million dollars in transactions per year on his account. Now...does that trader have $250 million dollars sitting somewhere? No. He never uses more than $50k at a time maximum. To make it even easier to understand lets say you & I are on an island. We divide the island in half. On my half of the island are all the mango trees. On your half of the island are all the coconut trees. There is only one 1oz gold coin on the island(and i own it hehe) Now, one day I say "Hey I want a coconut" then you say "ok...they cost 1 gold coin each" So I give you the gold coin and you give me the coconut. The next day you want a mango. so I say" They cost 1 gold coin." You pay me the gold coin and we do this for a whole year. Now If coconuts and mangos cost 1 gold coin each, thats 365 oz of gold that the coconuts/mangos were worth. Not to mention we both have a stockpile of 1000s of mangos & coconuts we both have. So...the question is...do we need 100s or 1000s of oz of gold to do our daily transactions or do we just need 1 gold coin? Hope that explained it for you. Just because there other assets out there it doesnt mean we need an equal amount of gold just because we value the items in gold. A car is an asset, gold is an asset, a building is an asset and a coconut is an asset. They all have value, some higher some lower. Gold is an asset that is just a medium of exchange that all people would accept for whatever assets they have that they want to sell. Make sense?
What are you talking about? First, I'm making coffee right now. I'm not having an epiphany over a gold vs steel debate. Do you understand how crazy you sound? SECOND....what is the point of this thread and why the heck do you care so much?
Thanks, now I feel better. But if Forex industry ($1100 Trillion per year) shuts down, Obama will beg on the streets.
After 2 months I will appear on BBC and CNN (if I survive). When I die I will be the happiest person. No bad thoughts. 2 Years back somebody said to me "you will appear on BBC one day". God has sent me to earth for a specific purpose (set souls on fire).
So we are assuming that every transaction is made in gold. We are also assuming that the value of total transactions is increasing through time (at least we hope). In this scenario (growth) the value of gold would be forced to increase in order to accommodate for rising transaction value. We can't mine at a fast enough rate to keep up with growth. That means that the existing supply must be worth more if there are more things and everyone exchanges those things in gold.
Don't relate what's stated in this thread to religion. It honestly has nothing to do with it. The topic is gold and steel. God doesn't care about either. Gold has gotten to the point where it has become idolized.
We can mine fast enough. Eventually the world will stop growing. (after all, we cant have infinte people on a finite planet)