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<p>[QUOTE=&quot;JoeSmith, post: 738874, member: 18021&quot;]Yes, I like gold,&nbsp; &quot;whether or not the market likes it...&quot;.&nbsp; You see, I measure everything it terms of gold.&nbsp; In my worldview, there is no market for gold.&nbsp; There&#039;s a market for dollars.&nbsp; My emotional attachment to gold is based on 6,000 years of recorded history.&nbsp; When one says &quot;the market likes gold&quot;, what that means is the market doesn&#039;t like dollars.&nbsp; If the market decides to start liking dollars, I&#039;m happy, because I have some dollars.&nbsp; In my view, my gold hasn&#039;t changed.&nbsp; So, if the market decides to start liking dollars, should I buy some dollars with my gold (i.e., &quot;sell&quot; my gold)?&nbsp; I consider that speculating.&nbsp; I believe non-gold bugs have an emotional attachment to dollars, which means they believe our government, our banks, will act in a responsible way to assure continued faith in the dollar.&nbsp; I believe that is irrational.</p><p><br /></p><p><br /></p><p><br /></p><p>One of the early examples of using fiat currencies to steal from the people was Henry VIII.&nbsp; He started adding copper to the silver coins he issued.&nbsp; After some time, the image of his nose on the coins became copper colored, earning Hank the nickname &quot;old copper nose&quot;.&nbsp; Here&#039;s a good article that summarizes it:</p><p><a href="http://history.wisc.edu/sommerville/123/123%20232%20Henry%20&amp;%20edward.htm" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://history.wisc.edu/sommerville/123/123%20232%20Henry%20&amp;%20edward.htm" rel="nofollow">http://history.wisc.edu/sommerville/123/123 232 Henry &amp; edward.htm</a></p><p>This caused inflation, and eventually the debased coins were withdrawn from circulation.&nbsp; The people knew they were being robbed.&nbsp; Today its done more subtly, but still, every dollar that gets &quot;monetized&quot; robs buying power from everyone who has dollars.</p><p><br /></p><p><br /></p><p><br /></p><p>Thanks for that good input!</p><p><br /></p><p>Just to make a concrete example, lets suppose a half gallon of milk costs $1 in the US.&nbsp; Then a half gallon of milk in europe would cost 1.5 euros.&nbsp; This means if you take dollars to europe, exchange them for euros, and buy a half gallon of milk, it will cost over 2 dollars.&nbsp; By the same token, a european could come here, trade euros for dollars, and double the spending power.&nbsp; This is an imbalance that is correcting itself.&nbsp; In othe words, it takes twice as much gold to buy a half gallon of milk in europe than it does here.&nbsp; Our dollars are still about twice as valuable as they should be, which is why the price of gold will double, over $2,000.</p><p><br /></p><p>With fiat currencies, you&#039;re just trusting the issuing government to &quot;play fair&quot;.&nbsp; If a country finds itself deeply in debt, they could just devalue thier currency, and presto, debt cut.&nbsp; Of course the creditor nations could just devalue their own currency in retalliation and self-defense.&nbsp; That&#039;s not good for anyone, so they get together and make agreements.&nbsp; When things still go wrong, they get together and make new agreements.&nbsp; Whatever agreements they come to, they have to involve the dollar being worth less compared to other currencies.&nbsp; The US is taking more from other countries than we&#039;re giving back, and have been for some time.&nbsp;&nbsp; </p><p><br /></p><p>We&#039;re in a dollar bubble, and its just starting to burst.&nbsp; The dollar is over-valued.&nbsp; When bubbles burst, the price of the object of the bubble tumbles, to about a third its bubble high.&nbsp; Then it slowly climbs back, as the bubble bursting takes it too low.&nbsp; If you&#039;re a &quot;non-gold bug&quot;, you see a gold bubble, which will lose half its value when it bursts, then slowly come.&nbsp; But, if you&#039;re a gold bug, you see a dollar bubble, which will burst and slowly come back.&nbsp; In terms of the &quot;price&quot; of gold, this means gold will continue to rise rapidly, then dip slightly and slowly come back.&nbsp; But, if more dollars are printed, in a futile effort to stop the inevitible, that won&#039;t happen, the &quot;price&quot; of gold will continue to rise rapidly, then dip slightly, then go into another bubble, and another, until something happens to stop the cycle.</p><p><br /></p><p>I stand by $2,000 in 2010.</p><p><br /></p><p>By the way, 1140 today.[/QUOTE]</p><p><br /></p>

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