Gold a risky buy; It does not have the backing of the FRN

[rambone]

http://www.youtube.com/watch?v=aWyrjwXoIqA

 

[Bunnykid68]

WOW. Stupid lives and breathes everyday

 

[Constructionist]

Yes, from the dawn of civilization, government backed fiat currencies have always trumped precious metals.

 

[CalebToNowhere]

Ah ha ha ha ha...

Yes, from the dawn of civilization, government backed fiat currencies have always trumped precious metals.

 

[John Galt]

This is proof that God has a sense of humor

 

[Wingcollector]

That is quite frankly the stupidest thing I have ever heard. How could she say that without cracking up.

 

[hooky]

Silly canucks

 

[revsaxon]

Wow... even I think that one is kinda dumb. Didn't anyone tell her we buy gold because its not backed by someone who can fail?

 

[Paco Bedejo]

Simply wow...

http://www.youtube.com/watch?v=p7w64fbqYQY

 

[Stschil]

Uuuuuhhhhhhhhhhh, W T F ???

 

[96firephoenix]

I seriously just facepalmed so hard it hurt. I think I have a mark.

 

[Benny]

LMAO!

I love how the news anchor just nodded intently like she wasn't hearing quite possibly the worst financial advice to ever be spoken.

 

[level.eleven]

Why is she wrong?

The dollar is backed by the world's largest, highest funded, most technologically advanced military in the history of the earth - including allies such as all of North America and the EU.

Who backs gold?

 

[RockofStrength]

Why is she wrong?

The dollar is backed by the world's largest, highest funded, most technologically advanced military in the history of the earth - including allies such as all of North America and the EU.

Who backs gold?

Gold has intrinsic value: it is valuable because it is gold. Given a market and a strong demand it can be more valuable (as it is now) or given a market with weak demand it can be less valuable but gold always and forever will be a valuable metal. It doesn't actually need to be backed, unlike a fiat currency which, in the dollar's case, is backed by the "full faith and credit" of a bankrupt nation run by fools.

 

[level.eleven]

Gold has intrinsic value: it is valuable because it is gold. Given a market and a strong demand it can be more valuable (as it is now) or given a market with weak demand it can be less valuable but gold always and forever will be a valuable metal. It doesn't actually need to be backed, unlike a fiat currency which, in the dollar's case, is backed by the "full faith and credit" of a bankrupt nation run by fools.

So its the strongest military mankind has known plus its trade partners vs. no one. Got it.

Would the US go to war to assure the price of gold? Would they for the dollar?

 

[pudly]

The dollar is backed by the world's largest, highest funded, most technologically advanced military in the history of the earth - including allies such as all of North America and the EU.

Hmmm... I thought that the dollar was backed by the full faith and credit of the U.S. Seems like the key monetary players have been dealing in bad faith (especially recently) and U.S. credit is sinking. Nope, the military can't help those at all.

 

[RockofStrength]

So its the strongest military mankind has known plus its trade partners vs. no one. Got it.

Would the US go to war to assure the price of gold? Would they for the dollar?

Intrinsic value means that it has value in itself. It doesn't need one single man with a rock to "go to war" to ensure its worth: it is valuable because it is rare, resistant to decay, and because people have always desired to have it. It has been considered valuable in almost every civilization advanced enough to care about things beyond mere subsistence. To repeat: it does not need an army or a government to back it in order to make it valuable: it is valuable already provided there is a market which will trade in it.

The dollar, on the other hand, must be backed by something because otherwise the piece of cotton the bills are printed on is useful only as a Schumer-hits-the-fan toilet paper supply. You are essentially using Monopoly money in the great game of Global Economics: Keynesian Edition

 

[hornadylnl]

Intrinsic value means that it has value in itself. It doesn't need one single man with a rock to "go to war" to ensure its worth: it is valuable because it is rare, resistant to decay, and because people have always desired to have it. It has been considered valuable in almost every civilization advanced enough to care about things beyond mere subsistence. To repeat: it does not need an army or a government to back it in order to make it valuable: it is valuable already provided there is a market which will trade in it.

The dollar, on the other hand, must be backed by something because otherwise the piece of cotton the bills are printed on is useful only as a Schumer-hits-the-fan toilet paper supply. You are essentially using Monopoly money in the great game of Global Economics: Keynesian Edition

I think he's yanking your chain.

 

[IndySSD]

I think he's yanking your chain.

Geeze I hope so.... however time has taught me that like my Pa always said, just because someone owns a gun, doesn't mean they've got the sense that God gave a dog. It just means they had enough money to foot the bill.

 

[GTM]

Intrinsic value means that it has value in itself. It doesn't need one single man with a rock to "go to war" to ensure its worth: it is valuable because it is rare, resistant to decay, and because people have always desired to have it. It has been considered valuable in almost every civilization advanced enough to care about things beyond mere subsistence.

But what would a block of gold have bought you in New Orleans after Katrina? If the economy collapses then it would seem that a chicken would have more value than a block of gold.