Skip to comments.What Is Gold Really Worth?
Posted on 05/12/2011 7:09:24 AM PDT by SeekAndFind
What is gold really worth? In one sense, the answer is obvious. Gold is worth $1,515.10/oz, because that is what it is trading for in the market as of this writing. However, all this number means is that an ounce of gold has 1,515.1 times the market value of our current, undefined, fiat dollar.
A deeper and more interesting question is, What should gold be worth? In other words, in terms of what quantity of gold would we define the dollar if we wanted to have a stable currency, a stable economy, and stable financial markets?
This is not just an academic question. The dollar is experiencing a crisis of confidence. Our undefined, unstable dollar caused the crash of late 2008, and it is the principal problem behind what is unfolding as the slowest economic recovery on record.
Right now, the dollar problem is chronic and debilitating, but it could become acute and economically life threatening at any moment. In an acute dollar crisis, Congress would be forced to act, and the action that would best address the problem would be to define the dollar in terms of gold.
The idea of defining the value of the dollar in terms of the value of a fixed weight of gold is not a radical notion. The radicaland ultimately unworkablenotion is for the dollar, which is our basic unit of market value, to have no legal definition. Our undefined, floating dollar is producing the same kind of economic chaos that we would expect if we had a floating second, pound (mass), or foot.
The cost of coping with this economic chaos is enormous and growing. It shows up in many different ways, including anemic real GDP growth, wild swings in gasoline prices, 9.0% unemployment, stagnating real median incomes, and rising inequality.
(Excerpt) Read more at blogs.forbes.com ...
Gold is worth the same as it’s always been. A high quality custom tailored men’s suit.
If I had gold, I would take what I can get now and run. It’s going to drop like a rock this summer.
Gold won’t be worth more than copper when my team completes it’s atomic compositor and generates pure gold from simple raw materials. You have been warned.
give me a pound of gold and I will give you a pound of suits.
At this moment, about $1490.00.
Bernanke(BurnYankee) can do on a scale what no alchemist dared dreamed.
That's a ridiculous myth pushed by gold salesmen.
The price of men's suits have not gone up 620% in the past 10 years. And in the 1980's the price of men's suits didn't suddenly jump to $860 only to fall back to half of that 3 months later.
Good quality men’s suit $1460.00
Whatever one can get for it.
We are not talking about a J C Penny suit.
We are not talking about any man's suit ever made.
The only suit that the price of gold actually tracks would be a man's suit made out of gold itself.
See Post 10
Rather than a man’s suit, I would use a loaf of bread.
With bread you could go back a 1000 years if you wanted.
What was the cost of a loaf of bread when we were on the gold standard and you could pay for it with gold?
What is the cost of a loaf of bread today?
This would be the same amount gold as above.
Cost of Bread / Amount of Gold.
I may do this today if I have a chance.
Everything is on the internet.
In the late 50’s you could buy a gallon of gas for a couple of silver dimes. Today you can buy a gallon of gas for a couple of silver dimes and get change. Yes, I know you would have to stop at a coin store on the way to convert it. I have no interst in selling gold or silver, but denial is not good for your pocket book. I don’t understand the emotional reaction some have to the mention of gold or silver.
Your comment will go down in history as THE textbook example of a MISSED POINT!
Here’s another that I’m certain will totally elude you: With the “dollar” (actually a Rederal Reserve Accounting Unit Denominator or F.R.A.U.D.) currently at 1/33rd of an oz. of SILVER, gas is now selling for around $.20 a gallon — IN PRE ‘65 90% SILVER DIMES!
Contrary to popular belief, gold has very little intrinsic value.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.