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<p>[QUOTE=&quot;quick dog, post: 90596, member: 4093&quot;]You gentlemen seem to know an awful lot about gold.&nbsp; Do any of you have historical data which attempts to quantify gold on the basis of other commodities; things like silver, copper, loaves of bread, slaves, etc?&nbsp; I would be very interested how stable the value has been.</p><p><br /></p><p>I remember reading an article where someone had done that with the price-ratio of gold and silver.&nbsp; The problem is that silver has changed value in modern times due to industrial usage, and because silver is a byproduct of both copper and gold mining.&nbsp; There is a lot of silver out there.&nbsp; Gold, by and large, has only minor industrial value.&nbsp; Gold still requires hoarders and those who fancy shiney metals.</p><p><br /></p><p>We have an old lode gold mine in Sierra County called the 16:1 Mine.&nbsp; The mine may have been named after the ratio of the gold and silver prices in the late 1800s in California, or maybe it was the actual ratios of these metals in the dore.&nbsp; A memory would be convenient.&nbsp; Regardless, the ratio of the prices of gold and silver has increased dramatically in the past 120 years.&nbsp; I believe that the gold:silver ratio was 30:1 in Ebla (a town in ancient western Syria).</p><p><br /></p><p>So what is gold really worth?&nbsp; 150 gallons of 87 octane American gasoline per ounce, or 75 gallons of gasoline somewhere in Europe.&nbsp; Is the current price of gold supported by anything tangible?&nbsp; What if they convened a gold auction and nobody came?&nbsp; Is the price of gold completely artificial?&nbsp; Should we use pig iron or aluminum anodes instead.&nbsp; In one sense, I think useful commodities actually form the basis of modern money.&nbsp; I assume that I am wrong.&nbsp; Fire away. :goof:[/QUOTE]</p><p><br /></p>

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