I can’t wait to take my ounce of Gold to MacDonalds for a Big Mac with Fries....
“I can’t wait to take my ounce of Gold to MacDonalds for a Big Mac with Fries....”
Your ounce of gold should be good for a family dinner with all the trimmings at the very best restaurant in town. And it always will, since gold holds it’s purchasing power over time.
For your McDonald’s meal a silver dime or two should be enough.
If Bernacke has his way, it might take two of 'em. ;-)
Take your Krugerrands to the bank.. and they would dearly love to give you fiat paper..
-OR- take beaucoup amounts of paper(raising daily) plus fees for another Krugerrand..
Will you take five dollars for that ounce today?
Your ounce of gold is worth more then 1400.00 a troy ounce..that would be pretty silly to put it into a burger.
“I can’t wait to take my ounce of Gold to MacDonalds for a Big Mac with Fries.”
The franchise owner will become your new best friend.
Obviously, you lack the basic understanding of how gold works.
Last i checked, you cannot receive sustenance from the dollar bill... Yet, people gather these to get food. How?
They exchange the increasingly worthless paper for the perceived value... A number of burgers.
Gold introduces another layer to that equation, abstracting your buying power into a commodity that transcends any one currency. In so doing, it holds the buying power of the money you bought the gold with.
As an example, you can buy a loaf of bread for about $3 right now. Same with a gallon of gas. With gold @ $1400/oz, that money has a buying power which enables you to purchase about 466 loaves of bread or gallons of gas. If gold shot to just $2800/oz... Bread would be around $6/loaf. Selling your gold and receiving the $2800 would allow you to still buy 466 loaves. If you kept your $1400 in cash in your mattress, you’d only get about 233 loaves, showing a reduction in buying power and the devaluing of the dollar (investigate the price of gold & bread in Jan 2008... Then compare to today)
There are plenty of similar explanations available, doing your homework before spouting off would help reduce the likelihood of appearing uneducated
Additionally, swapping between gold and silver, trading on the ratio lag, can result in a tidy advance of your buying power