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No it can't.

Of course it can. Check the value of gold and our dollar over whatever time period you like. They do not have an inverse relationship. In fact, the value of gold has little impact on the value of the currency.

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Of course it can. Check the value of gold and our dollar over whatever time period you like. They do not have an inverse relationship. In fact, the value of gold has little impact on the value of the currency.

In 1933 President Franklin Roosevelt ordered an increase in the gold price from $20.67 to $35.00 per oz. He did this to break the deflation that was causing the Great Depression.

In 1971 President Richard Nixon ended the conversion of dollars into gold at the $35 rate and in less than 9 years gold was up to $800 per oz.

If gold doesn't have a significant impact over the value of the currency, why would a president need to set its price?

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Anyone use TD waterhouse to purchase stocks?

I recently opened a new account with them. How does it work?

What's their service fee ?

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Anyone use TD waterhouse to purchase stocks?

I recently opened a new account with them. How does it work?

What's their service fee ?

Yeah, I use TD Waterhouse. Once you register itll show up online as your webbroker account when you go into easyweb. Its a flat rate of $9.99 per trade now. Less if you make more than 150 trades per quarter. The website has all the usual market data and research for every stock.

Once you go into webbroker online its very straightforward for putting cash into the account and buying/selling stocks.

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Because what makes silver valuable is its physical properties. For every ounce of physical metal available above ground, there is over 100 paper ounce contracts. For gold the ratio is around 60:1. What happens when people decide they want to take delivery and there is only so much to go around? You won't get the metal you thought you owned. Period.

Secondly, silver is money, albeit a different form than the modern currency we have today. So why not have some?

Mad max? - No.

Long term financial transitions? - Yes.

Thats like saying you keep a huge pile of money under your bed because theres not enough paper money in existence if everyone went to the banks demanding all their holdings in cash. Yes, you are describing a Mad Max type scenario. Word it how you want its still that ridiculous.

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In 1933 President Franklin Roosevelt ordered an increase in the gold price from $20.67 to $35.00 per oz. He did this to break the deflation that was causing the Great Depression.

In 1971 President Richard Nixon ended the conversion of dollars into gold at the $35 rate and in less than 9 years gold was up to $800 per oz.

If gold doesn't have a significant impact over the value of the currency, why would a president need to set its price?

Two examples from way back when.... The relevance of gold as a means of controlling currency valuation is no longer significant today.

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You know, the amount of all newly-counterfeited printed dollars units over time do not necessarily have to be reflected in the price of gold...

12019898_790209361088806_469144516111626

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You know, the amount of all newly-counterfeited printed dollars units over time do not necessarily have to be reflected in the price of gold...

12019898_790209361088806_469144516111626

Those bars at the bottom reflects price of gold? Hey yeah we agree on something for once.

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Thats like saying you keep a huge pile of money under your bed because theres not enough paper money in existence if everyone went to the banks demanding all their holdings in cash. Yes, you are describing a Mad Max type scenario. Word it how you want its still that ridiculous.

You know bank runs happen around the world today right? Just because it's not happening to you, doesn't mean its not happening. We have the same financial system here as they do in Greece, Venezuela, Puerto Rico etc. Maybe we define Mad Max differently.

Two examples from way back when.... The relevance of gold as a means of controlling currency valuation is no longer significant today.

Right now central banks can manipulate currencies in the Forex markets so there less of a need to use gold. In that, I agree with you. Where we disagree is, it will have relevance again at some point in the future because fiat currencies will fail. It is gaining relevance more and more every day.

You know, the amount of all newly-counterfeited printed dollars units over time do not necessarily have to be reflected in the price of gold...

12019898_790209361088806_469144516111626

I didn't say it was reflected in the gold price. The gold price is a joke. We don't have free markets and therefore no such thing as price discovery.

In reality, as long as there are dollars and gold on this planet they are relevant to each other in terms of value. Price not so much.

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Because what makes silver valuable is its physical properties. For every ounce of physical metal available above ground, there is over 100 paper ounce contracts. For gold the ratio is around 60:1. What happens when people decide they want to take delivery central banks decide to revalue money and there is only so much gold and silver to go around? You won't get the metal you thought you owned. Period.

Secondly, silver is money, albeit a different form than the modern currency we have today. So why not have some?

Mad max? - No.

Long term financial transitions? - Yes.

Thats like saying you keep a huge pile of money under your bed because theres not enough paper money in existence if everyone went to the banks demanding all their holdings in cash. Yes, you are describing a Mad Max type scenario. Word it how you want its still that ridiculous.

Fixed it for you above.

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Exactly. It is more about the value of the dollars decreasing, than the value of the gold increasing. The gold doesn't change, it is what it is. It is the dollars that are volatile. (have a look at the 10 year chart of oil for fun)

This is why I asked you to define value.

2500 years ago in ancient Greece, you could take an ounce of gold and buy yourself a decent toga, a belt and some sandals.

Today, you can take an ounce of gold and buy yourself a decent suit, a belt and some shoes.

On the other hand, the US dollar has lost 96% of its purchasing power in the last 100 years.

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I'd participate more in this discussion but I usually only hold stocks for between 3 and 15 minutes, currency pairs for even shorter. Haven't looked at a balance sheet in years

Edited by Amish Rake Fighter

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Right now central banks can manipulate currencies in the Forex markets so there less of a need to use gold. In that, I agree with you. Where we disagree is, it will have relevance again at some point in the future because fiat currencies will fail. It is gaining relevance more and more every day.

I don't understand why all the free market hawks are against fiat currency. Let the market decide what the currency is worth.

(If the government can significantly control the value of the currency, every modern economy wouldn't have currency issues)

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I don't understand why all the free market hawks are against fiat currency. Let the market decide what the currency is worth.

(If the government can significantly control the value of the currency, every modern economy wouldn't have currency issues)

Free markets = letting the market decide.

Right now the Fed has decided that for the last 6 years the cost of money should basically be 0%.

I'm not against fiat currency per se, just don't tell me we have free markets.

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Good ol' Canucks.com

Why talk about investing when you can argue with metal licking conspiracy theorists?

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Free markets = letting the market decide.

Right now the Fed has decided that for the last 6 years the cost of money should basically be 0%.

I'm not against fiat currency per se, just don't tell me we have free markets.

Feel free to undercut them and lend me money at negative interest. I will happily let you pay me to borrow money!

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2500 years ago in ancient Greece, you could take an ounce of gold and buy yourself a decent toga, a belt and some sandals.

Today, you can take an ounce of gold and buy yourself a decent suit, a belt and some shoes.

On the other hand, the US dollar has lost 96% of its purchasing power in the last 100 years.

On the other hand, it's a great example showing that the rate of return, over 2500 years, for gold is zero. Still just sits there looking shiny.....

Sure, someone that stuffed dollar bills into their mattress would be SOL....

Of course, the truly rich people would advocate neither. They tend to invest in things that actually do something and make money, the form of which is of course relatively irrelevant so long as you can exchange it at will.

But hey, why worry about math and logic?

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Feel free to undercut them and lend me money at negative interest. I will happily let you pay me to borrow money!

Some people don't understand why we have low interest rates. It's not an arbitrary decision.

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On the other hand, it's a great example showing that the rate of return, over 2500 years, for gold is zero. Still just sits there looking shiny.....

Sure, someone that stuffed dollar bills into their mattress would be SOL....

Of course, the truly rich people would advocate neither. They tend to invest in things that actually do something and make money, the form of which is of course relatively irrelevant so long as you can exchange it at will.

But hey, why worry about math and logic?

And they don't talk about the fact that there are a lot more zeros at the end of our pay cheque than before. It's just inflation where wage catches up over time. All and all not too much has changed in terms of what your pay chq can buy you.

Although Gen Y is worse off than their parents. That seems to be a fact, a historical first where the next generation is worse off.

Edited by Hugor Hill

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