Gold price to go steady, dips imminent?

jon3001

Ark_Welder wrote: »

So silver has risen in price. As I have never been into photography or trinklets and baubles its industrial demand has passed me by.

Silver is a high-tech metal. You're selling it very short in today's modern applications.

Ark_Welder

jon3001 wrote: »

Silver is a high-tech metal. You're selling it very short in today's modern applications.

Short selling...?


Who Sir! Me Sir?

sabretoothtigger

Definitely a spiv

jon3001 wrote: »

The original pound sterling was a 'tower pound' of silver (11.25 troy ounces). Today that's worth £272 - representing a fall of 99.6%

A Victorian pound was 1 sovereign gold coin. The price is listed in the paper most days, its quite similar about 260 odd I think

Value of gold does not change, the prices attached to it do apparently


The conclusion from the above is that from the 8th century to Queen Vic's time the value of 1 pound stayed more or less stable.


The silver measure was medieval and Vic was only 111 years ago but since that time we switched to paper only.
The currency is now worth 1/265 of its original worth, if you held cash you are royally screwed

Thats more true now then ever before but people wont believe you should hold onto something solid of some sort. Its all too risky compared to cash :eek:

Ark_Welder

sabretoothtigger wrote: »

Value of gold does not change, the prices attached to it do apparently


The conclusion from the above is that from the 8th century to Queen Vic's time the value of 1 pound stayed more or less stable.

Gold has no value except that placed upon it by the parties to a transaction. The pound was most definately not stable for a thousand years - gold does not prevent inflation. If you check out the rate of inflation when the UK was on a gold standard (a proper one as well as a pseudo one) then you will see that there were periods when inflation was more than double the rate is is now - they didn't even have Quantitive Easing to help them with that either! In fact, inflation swung wildly between positive and negative rates.


In 1971, an ounce of gold was £16 and a loaf of bread was 10p
In 2011, an ounce of gold is £1100ish and a loaf of bread is £1.20 (for the stuff that doesn't go into a bread pudding).

If gold had constant value and didn't affect either inflation or prices then a loaf of bread would today have a cost of £6.87 (and a few days ago it was closer to £8.12)


To paraphrase: 'The value of money does not change, the prices attached to it do apparently'

[technology]

Ark_Welder

sabretoothtigger wrote: »

Definitely a spiv

Want to buy a watch?

Real gold. Honest, Guv, honest...

Ark_Welder

jon3001 wrote: »

Silver is a high-tech metal. You're selling it very short in today's modern applications.

But on a serious note, you highlight a change in the metal's use. Therefore, a direct comparison of price then and now is not totally authentic.


On a less serious note...

Consider. 1200 years ago the printed money of its day was done on a medium whose oxidation deterioration was less progressive and more stable than others, such as iron or copper.

When alternative print media were found, the original medium became largely redundant until industrial uses were discovered that allowed mass-produced disposable consumer gadgets to - until very recently - end up as landfill.