Message:

<p>[QUOTE=&quot;fatima, post: 888429, member: 22143&quot;]There is not ANY direct correlation between the price of gold and jobs.&nbsp;&nbsp; Gold, as it is being discussed here, is nothing more than another currency.&nbsp;&nbsp; But it is a unique currency because it does not come with any specific government liabilities so it&#039;s worth does not change.&nbsp;&nbsp; What <u>does</u> change is the ability of the fiat currency issued by any given country to buy it.&nbsp; &nbsp; In the case of the USA this is the $.&nbsp;&nbsp; </p><p><br /></p><p>So that means if the currency is strong and is backed by sound governmental and fed monetary policy, then the price of gold falls because it&#039;s paper currency is strong.&nbsp; &nbsp; When the $&nbsp; heads towards being worthless because the government creates too much money relative to the economy (it borrows), then gold rises in price.&nbsp;&nbsp; It can&#039;t be more simple than that.<blockquote><p> Here is a very simple example.&nbsp;&nbsp; if you are stuck on rescue boat with some other people and you have a bottle of water in your pocket.&nbsp; Because you are a dog eat dog Mr capitalist, you decide to sell it to the highest bidder on the boat.&nbsp; So bidding takes place and the high bidder wins the water for $10.&nbsp; The price of water, then, in that small economy is $10.&nbsp; However, one of the passengers realizes he has $100 in his pocket.&nbsp; The price of that water just changed to $100.&nbsp; The value of the water didn&#039;t change.&nbsp; What changed was the currency&#039;s ability to buy it.&nbsp; &nbsp; &nbsp; ....&nbsp; Now suppose civil order breaks down and a fight breaks out.&nbsp; What do you think they will be fighting for?&nbsp; The water or the paper dollars.&nbsp;&nbsp; </p><p><br /></p></blockquote><p>If you believe that, then it should be easy to understand that we are not talking about the price of gold, but rather the ability of the paper currency, the $ in the case of the USA, to buy gold.&nbsp;&nbsp; The price of gold will begin to fall if the government adopt policies that makes the $ stronger.&nbsp;&nbsp; So the real question is &quot;what has been changed&quot; to increase the ability of the $ to buy an ounce of gold?[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in