Gold

[cottonpicken]

And what if china issued a gazzillion yuan?

And offered you a million per quarter section of land?

And they issued a gazzillion next year?

[Hopperbin]

but I would not take foriegn currency but might get the point, continue.

[hedgehog]

the uk govt of blair dumped our gold for $200/oz back in 99.
dimwits.

apparently italy has a huge reserve.

[Hopperbin]

Our nations money supplies is backed by the tax payers. Backing with gold or other stockpiled mineral would cost more, but may reigne in Government spending.

[rockpile]

Cottenpicken, I realize where you are going with
this but... Let's assume the Euro was a lab
experiment gone wrong - was doomed from day
one. Yes, all that loose money out there might just
run to gold, say $3,000/oz or more. But 3,000
which dollars? Let's imagine that un-repayable
deficits become the new norm and become
acccepted with the knowledge that they will never
be paid back. Or that the IMF and WB host a Global
conference and everyone agrees to a world wide
debt write down, is that not a possibility? Say a
global Chapter 11. It is all just paper is it not?
Besides, if I was a creditor and I knocked on the
door of the US and demanded immediate payment
on their debt, what if the door was answered by the
USN Carl Vinson? I think we are on the cusp of
something new here and all old theories are about
to go out the window. As for Sprott, he has a vested
interest when he gives analysis.
For what it's worth, Rockpile

[mbratrud]

Nations that have nothing offer should probably have something to back currency like PIGS. Canada is a Country that is rich with Natural Resources and has that for a hedge. In hindsight would it have been nice to have the Gold reserves because of the value. But look at the price of Natural Resources in that same period. 10 years ago it would have been hard to predict what gold would do. I wish I had my $6 Canola and my $6 Flax to sell, Oil Companies wish they had $50 oil to sell. Hindsights 20/20.

[mbratrud]

Although Gold can be considered the standard everything has a value and can be traded. The value is determined by the people trading with each other. Say the financial world blows up tomorrow. There will still be someone who covets a fine bottle of Italian wine and is willing to trade some wheat for it. Or I might want a German Car and am willing to trade Oil for it. Yes someone might even want some gold and will trade a house for it.

My Point is Gold is only worth what someone is willing to trade for it. If wheels fall off the financial bus and paper is worth nothing, I am worried about the things I need to live, Food, Clothing, Shelter, Transportation.... Not uhummm Gold! In a huge financial Melt Down, Who values the Gold and What is it really worth? If you are Italy would you rather trade Gold for Oil for example or Italian made Cars and wine? What is going to help your country more? And for those that say they should have gold to secure credit, well why then would they need credit?

Thats the way this Redneck sees it anyway

[parsley]

It's about trust. And safety. Greek or Icelandic
money? How about francs under your mattress?
A herd of cows take a lot of fast eating as
slaughter houses declare bankruptcy. What can
you pack when you leave Poland for Australia?
Does South Korea really trust China's renminbi?
Trust in which valuables? That can be traded
quickly. Gold has stood the test of time.

[mbratrud]

Hi Pars, I am not arguing that Gold is the "gold standard". If Canada today had 75% of its debt secured by Gold our Dollar would be much higher and would that be a good thing for an exporting nation. The use of Gold in Developed economies is different than prior to the Industrial Revolution. Yes it is much easier to carry an ounce of gold vs 6 tonne of wheat. But at the risk of sounding like a Retard, to me Gold is not the same value as 5000 years ago. Water World is a great movie to demonstrate this Cigerettes, Oil and Paper thats where its at. Again just 1 Retarded rednecks opinion...

[mbratrud]

If I go to a Bank and ask to borrow money to buy Gold or a Quarter of Land, what are they going to allow me to Leverage at? I am thinking the Gold I will need to have at least 50% down plus extra security, and Land i will need no more than 20% down and probably can get it with 10% down. Why is that? Ok now i'm just arguing to argue.

I will give you this though that in the event our civil liberties were at risk I would sell my farm and every thing I own and buy gold and bury in small amounts all over the place.. LOL