Tensions rising in the Middle East, so is the price of GOLD

Yeah, Peace is good. But if anyone thinks there will be peace in the near future, they’re delusional
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The real per-capita income cost of an ounce of gold is a fraction of what it was in the 1970's or 1980's.

The Chinese and Indian middle class were each about 5 million people in 1980. Today, China's is about 400 million and India's is about 150 million.

So if the real gold price in inflation-adjusted terms is about the same today as it was in 1980....but incomes quadrupled since then (possibly more)....then the real price is 1/4th what it was back then.

 

Those always struck me as a really stupid idea. If you just "break" a bar along a crease, you're going to get two sides of slightly different sizes. If you carefully cut it, you'll still get two pieces with slightly different sizes.

The same day it becomes common to break bars into fractions, bunches of people will start breaking their bars, then shaving the resulting pieces so they can trade away two "small halves" while keeping the shavings for themselves. It'll be the same race to the bottom that led to reeded edges, only much faster.

 

I'm sorry to say, the day it becomes necessary to fractionalize gold bars for 'commerce', you better be traveling with your band of protectors carrying the one precious metal, lead, that will truly be in demand.

IMO, the only time fractional gold will be useful will be the first few days, possibly couple of weeks, post apocalypse after all the grids systems go down, when there's a modicum of hope that order will be restored. After that hope fades, so will the rule of law and therefore the need for shaving gold, fractionalizing gold, and trading gold, for any necessities. At that time, showing someone with stores of things you need to survive, any gold you have, will only lead to them either telling you to get lost, taking it from you, or ending your need for any future necessities and taking whatever stores you might possess, to add to their stores.

For the record, I do not have a doomsday bunker. I don't prep for teotwawki (the end of the world as we know it). So I am not an extreme fringe prepper. I do however prepare for shortages, like we experienced during the plague that shall not be named. I believe in being smart about the fragility of our supply chain. I don't believe that gold is the long term answer to preserving wealth if the time ever comes that fractionalizing gold needs to be considered. At that point in time, wealth will be measured in a whole new framework of value.

 

I hear you ! However they are getting very popular I do like pamps approach they use
Individually packaged 1/10 OZ bars in s pack of 20 there’s no shaving going on there

 

Ah for the good old days. $2200 gold back in April 2024. Only $2700 now
Still waiting for world peace to break out
On the bright side gas going down, interest rates going down, stock (bond) markets going up
Told y’all then, telling you now
Spring loaded
With dealer premiums too high I had to buy GLD & SLV
The big move coming for Silver as demand has overwhelmed supply

 

gas down under $2 here. But gold still rising.

 

Local price war, maybe? Drove through some cheaper-gas parts of NC yesterday, and the lowest price I saw was 2.76. Cheapest I found on a quick gasbuddy.com search was around $2.60...?

 

Baloney on the gas price.

 

Here in Northern VA suburbs regular gas is around $3 give or take a few cents.

 

I keep a couple of 1/20 oz pieces that were designed to be used in commerce. A wedding gift from my younger, now deceased brother
http://chiefacoins.com/Database/Micro-Nations/Gold_Standard_Corporation.htm