The gain to be made from gold

Sell your gold, the price is headed back to the mean, which is probably around US$600. Gold and silver's been going up for years and are atrociously overpriced, the bubble has burst, and the USD will probably increase in value. It's not "different this time".

Don't sell your gold - hold onto it!

I saw the article on Campbell Live about the rise in the price of gold. What it left out is the main reason.

Gold - being a store of value - is not rising because it is somehow scarce in supply, but because a New Zealand dollar is worth that much less.

The gold merchant in your story showed the difference between how much gold a million dollars would buy ten years ago against how much it would buy today.

If it's a fact that the amount of gold left in the world has increased over the last decade, then it's not that pile of gold that has increased by that much, but that the million dollars has devalued by that amount in gold ounces.

The worlds trade currency is US dollars. When privately owned central banks electronically print trillions and trillions of dollars out of thin air - (to bail out their friends "Too Big To Fail") our's and the rest of the worlds currencies go along for the ride. It's the taxpayer the world over that takes on this public debt, while the people that caused the crisis are either in govenment, or still working in the same places.

It's the reason that there are protests going on all over the world about it.

It's not because they are hippies, or a mob wanting to riot and cause mayhem, jobless losers or the communist menace coming to destroy us all - it's that there's injustice in a system that gives prison time to a homeless man for stealing some food, is the same system that allows a rich man to steal trillions of dollars from everyone on the planet while laughing all the way to his Wall Street bank.

Anyway rant over, go the AB's! I can't handle another loss to the french.

Dear John,
The man, who weighed the 15c chain at 35.7gm and calculated the value at $1250, said there was no market for this sort of jewellery anymore, obviously meaning that the melted-down value is more than the second hand retail, yet the written valuation (probably a jeweller) was $1750. This raises another idea for one of your consumer stories, which has always puzzled me - why do jewellers and antique dealers always grossly over-value items for insurance? They even ask if it is for insurance and often offer two valuations - one high and another much lower, usually around two thirds for retail (wholesale being about half this). Is it a way of making a much higher replacement sale courtesy of the insurance company? Surely repacement value shoud be the same as retail. It would be interesting to hear their explanation.
When your reporter said, "It's not that they're giving you a bad price.", he was being too polite. They only offered 51, 61, 56 and 76% of the $1250.
Regards, David Ross.