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The Value of Gold NEVER Changes...

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  • The Value of Gold NEVER Changes...

    Ok I am sure you are thinking that I am off my rocker but here is my evidence

    2000 years ago in the Roman Empire someone could buy a really nice quality toga, hand tooled leather belt, and top flight pair of sandals. This outfit cost around ONE OUNCE of gold.

    Today someone in America can buy a really nice suit(not Armani of course), a hand tooled leather belt, and a pair of top quality shoes care to guess how much it would cost?? Well if you were to convert an ounce of gold into cash that would take care of your purchases.

    So if gold has maintained that kind of stability over 2000 years then what explains the devaluation of money?

    THat is easy. THe Romans ruined their currency when the y debased it by mixing tin or antimony into ther silver coins. They ruined the value of their currency and that was one of the reasons for their downfall.

    The same type of thing has happened to the American currency several times since Nixon finally removed us from the gold standard for good in either '72 or
    '74. Since then the currency has maintianed its' value through the manipulation of the amount of currency in circulation among other things. This might finally be coming to an end, unfortunately it looks like a bad end.

  • #2
    Finally some common scense

    TRUE!
    You cannot make a profit on gold (unless you mint coinage). The price of gold is stable. The 1 oz coin I bought for under $300.00 20 years ago cannot purchase more than it could then, only the value of currancy has changed! Being printed on paper, backed by a politician's promise, it is worth less than what it costs to make it.
    That is the reason that the USA started out on a gold standard, so it's currancy would not fluxuate in value and the citizens could enjoy a stable economy!
    LBJ took us off the gold standard and silver standard (no more Gold Notes, dollars redeemable in gold or silver at any bank!) so he could fund his socialistic Great Society and the Viet Nam War without buying more gold to back the dollars he was printing. Instead we got the Reserve Note, a paper IOU, but with no way to redeem it in precious metal and phoney 'silver coins' made of nickle and copper. Back in the day, I used to get 35 cents a day (in silver) to buy my lunch. even a 3 course hot meal at a diner cost under a dollar and a man that made $12,000 a year could support a family in a middle class life style. That was when gold was $35.00 an OZ. Thanks to FDR it was no longer leagle to even own gold coins in the USA back then! Since our Annointed Leaders took us off the gold standard our nation has diminished drastically, we are now ruled by 'elected officials' who appoint Czars to do the dirty work of enslaving this nation.
    Ask any 3rd worlder about gold. Do you think they wear all that jewelery because they are vain? Nope they are carrying thier wealth on thier body because thier paper money (like ours is now) is worthless becaus thier country is run by tyrants.
    The road to serfdom is paved with free electric golf carts.

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    • #3
      Eeeeeeexactly.........again.......
      "I Have Sworn Upon the Altar of God eternal hostility against every form of tyranny over the mind of man." -Thomas Jefferson

      "When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." -Frederic Bastiat

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      • #4
        yeppers sucks dont it we could always trade goats
        the pack that plays together stays together

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        • #5
          I downloaded a program from Forex.com that had to do with buying and selling currencies. You start out with a practice account with $50,000 to "play" with so you can learn the software and how to trade currencies.
          I tried it, buying GBP and AUG (Brittish Pounds and Gold respectively). The GBP didn't do much of anything, so I sold it...but I bought AUG at $1,052.53 per ounce, and bought 6 lots. The next day I checked the program, gold was at $1,054.89 per ounce.

          I checked the monthly prices, and in roughly March of 2000, gold was at $400 per ounce, and has NEVER been lower. I decided I wouldn't even try using my own money because even if I made money off it, the money I get out of it wouldn't have any increased buying power...I would just have more of it.
          "Reject the basic assumptions of civilization, especially the importance of material possessions." "The things you own end up owning you"-Tyler Durden

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          • #6
            Ah...but the value never goes away.....regardless of the economy....even if the dollar takes a giant sh*t....the gold will still be worth at least the purchase price in BUYING POWER...if not still more.....
            "I Have Sworn Upon the Altar of God eternal hostility against every form of tyranny over the mind of man." -Thomas Jefferson

            "When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." -Frederic Bastiat

            Comment


            • #7
              Regarding the value of money, I've done some math. There are 453.5 grams per pound. Bulk nickel per pound is Roughly $8.82, and the weight of a Nickel coin is 5 grams.

              Divide 453.5 by 5, and you have 90.7 nickels per pound. Divide $8.82 per pound of bulk nickel by 90.7 nickels per pound, and you have $0.09724. So, the actual value of the nickel in your coin is more valueable than the face value of your nickel.

              Wikipedia says: "Costs of producing and shipping one-cent (penny) and 5-cent (nickel) coins during fiscal year 2007 were $0.0167 per cent and $0.0953 per nickel." Read more here.

              So, earning a nickel per day, you are actually going in debt 4.5 cents per day. Earning a penny a day, you actually go in debt roughly 1.7 cents per day.
              My question is: How is it possible that our currency is worth LESS than the metal it is stamped from?
              "Reject the basic assumptions of civilization, especially the importance of material possessions." "The things you own end up owning you"-Tyler Durden

              Comment


              • #8
                Originally posted by Visinedrops View Post
                Regarding the value of money, I've done some math. There are 453.5 grams per pound. Bulk nickel per pound is Roughly $8.82, and the weight of a Nickel coin is 5 grams.

                Divide 453.5 by 5, and you have 90.7 nickels per pound. Divide $8.82 per pound of bulk nickel by 90.7 nickels per pound, and you have $0.09724. So, the actual value of the nickel in your coin is more valueable than the face value of your nickel.

                Wikipedia says: "Costs of producing and shipping one-cent (penny) and 5-cent (nickel) coins during fiscal year 2007 were $0.0167 per cent and $0.0953 per nickel." Read more here.

                So, earning a nickel per day, you are actually going in debt 4.5 cents per day. Earning a penny a day, you actually go in debt roughly 1.7 cents per day.
                My question is: How is it possible that our currency is worth LESS than the metal it is stamped from?
                One word:

                Fiat.
                "I Have Sworn Upon the Altar of God eternal hostility against every form of tyranny over the mind of man." -Thomas Jefferson

                "When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." -Frederic Bastiat

                Comment


                • #9
                  Ok that is shipping AND content but if you look at the metal content alone the metal value is less than face value.

                  The only coins that have metal content higher than face value are as follows:

                  pennies pre -1983
                  dimes pre-1965 "silver"
                  quarters pre-1965 "silver"

                  nickles are tricky since they are really close when compariing face value to metal content. This leads to them being very dependent upon the current prices of nickle and the the other metals.

                  New pennies have much less face value compared to the pre-1983 ones due to the copper content of the older ones being so high. That high copper content is what lead the mint to stop making the copper penny.

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                  • #10
                    Yeah, here's the chart that I go by for US coins: http://www.mountainviewcoins.com/gol...t-us-coins.php

                    We always sort through our change looking for any junk silver before rolling it up or taking it to the coinstar at our credit union (no fee or cost to use it there for members). Then we take the fiat and go to the local bullion dealer ;)

                    As a side note, do check the reject slots on coinstar machines as it will kick silver coins out (reject on weight I think) and a lot of folks don't even look in the bin after they dump their coins in...

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