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

By Patrick   2012 Nov 14, 9:52am   1,517 views   9 comments   watch (1)   quote

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.

Comments 1-9 of 9     Last »

1   C Boy     2012 Nov 14, 10:24pm  ↑ like   ↓ dislike   quote    

Can't pay my bills in gold.

2   ELC     2012 Nov 15, 8:25am  ↑ like (1)   ↓ dislike   quote    

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.

3   pkennedy   2/2 = 100% civil   2012 Nov 15, 10:01am  ↑ like (1)   ↓ dislike   quote    

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.

4   Peter P   78/78 = 100% civil   2012 Nov 15, 2:18pm  ↑ like   ↓ dislike   quote    

The Professor says

That is why you have silver.

Yellow brick road?

5   uomo_senza_nome     2012 Nov 15, 6:33pm  ↑ like   ↓ dislike   quote    

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?

6   uomo_senza_nome     2012 Nov 15, 6:37pm  ↑ like   ↓ dislike   quote    

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).

7   ELC     2012 Nov 15, 7:54pm  ↑ like   ↓ dislike   quote    

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.

8   ELC     2012 Nov 15, 7:59pm  ↑ like   ↓ dislike   quote    

pkennedy says

Gold is only useful

Gold is for posers.

9   dublin hillz   14/14 = 100% civil   2012 Nov 16, 2:33am  ↑ like   ↓ dislike   quote    

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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