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Is There Any Correlation Between the U.S. Dollar and Gold?


By Patrick   Follow   Wed, 14 Nov 2012, 9:52am PST   1,040 views   12 comments
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http://www.oftwominds.com/blognov12/USD-correlations11-12.html

The USD may gain relative to other currencies, but since all fiat currencies are declining against gold, it doesn’t mean that the USD is actually gaining value; in fact, all paper money is losing value.

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C Boy   Wed, 14 Nov 2012, 10:24pm PST   Share   Quote   Permalink   Like   Dislike     Comment 1

Can't pay my bills in gold.

ELC   Thu, 15 Nov 2012, 8:25am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 2

Melmakian says

the dollar is being purposely debased

Gold is being pushed by every low life huckster on every sucker who wants to believe the sky is falling while at the same time the dollar is being debased by unsound Government policy. That's why gold is not worth anywhere near what it's being sold for.

It's the same with real estate. All it will take is a change in Government policy and gold and RE will drop like a brick. Just as the elite failed to buy this election and fool enough of the ignorant, eventually normal intelligent people will prevail.

The Professor   Thu, 15 Nov 2012, 9:50am PST   Share   Quote   Permalink   Like   Dislike     Comment 3

If "they" keep creating more and more money it is inevitable that the money will eventually be worth little more than whatever curio value a collector is willing to give for it.

Gold was outlawed and confiscated in this country at the beginning of the New Deal. That was the last time the dollar had any correlation to gold.

Gold is pretty and shiny. It doesn't tarnish. It is an excellent conductor of electricity. It is hefty. It can be stretched incredibly thin.

Currency is always debased. Metal will always be valuable. Gold, silver, nickel, copper, even zinc and steel will always have worth.

When the printing stops the one with the most paper loses.

pkennedy   Thu, 15 Nov 2012, 10:01am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 4

You can't pay $23.45 with gold.

You can't easily figure out how much gold is worth at the time of a transaction.

You can't easily identify fraudulent pieces of gold, while paper bills have far more security features that the average person can use.

It doesn't matter what the currency is worth, because all you care about is how much you can buy with it at the store down the street. Most people are living pay check to pay check, so gold would do them absolutely nothing. They spend what they make at the time they make it.

Gold is only useful if you have a decent amount of money. And clearly those with a decent amount of money aren't buying up gold.

The Professor   Thu, 15 Nov 2012, 2:06pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 5

pkennedy says

You can't pay $23.45 with gold.

That is why you have silver.

Peter P   Thu, 15 Nov 2012, 2:18pm PST   Share   Quote   Permalink   Like   Dislike     Comment 6

The Professor says

That is why you have silver.

Yellow brick road?

uomo_senza_nome   Thu, 15 Nov 2012, 6:33pm PST   Share   Quote   Permalink   Like   Dislike     Comment 7

The Professor says

When the printing stops the one with the most paper loses.

When printing stops, currency is not debased anymore right. One with the most paper wins?

uomo_senza_nome   Thu, 15 Nov 2012, 6:37pm PST   Share   Quote   Permalink   Like   Dislike     Comment 8

I highly recommend Charles Hugh Smith to consider this blog article by Prof. Krugman on gold.

Gold is anti-correlated to real interest rates, at least for over 200 years of empirical data. This fact solves the Gibson paradox, the work of Barsky and Summers (yes, the same Lawrence Summers who was instrumental in deregulating the derivatives market).

ELC   Thu, 15 Nov 2012, 7:54pm PST   Share   Quote   Permalink   Like   Dislike     Comment 9

The Professor says

When the printing stops the one with the most paper loses.

What are you talking about? When there's less printing, money is worth more.

ELC   Thu, 15 Nov 2012, 7:59pm PST   Share   Quote   Permalink   Like   Dislike     Comment 10

pkennedy says

Gold is only useful

Gold is for posers.

The Professor   Fri, 16 Nov 2012, 2:07am PST   Share   Quote   Permalink   Like   Dislike     Comment 11

uomo_senza_nome says

The Professor says

When the printing stops the one with the most paper loses.

When printing stops, currency is not debased anymore right. One with the most paper wins?

ELC says

The Professor says

When the printing stops the one with the most paper loses.

What are you talking about? When there's less printing, money is worth more.

The printing stops after they make the $10,000,000 dollar bill.

dublin hillz   Fri, 16 Nov 2012, 2:33am PST   Share   Quote   Permalink   Like   Dislike     Comment 12

Conservatives were busy creating doom and gloom scenarious for the last 4 years in order to pump the value of their gold holdings. That much is obvious. Suckas will end up as bagholders, business as usual.

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