pimpdave wrote:There's no way Night Strike came up with that completely stupid comparison between gas and gold prices on his own, and I suspect whoever spoon fed it to him are the same types of people who were blathering on about how the real estate holds its value a few years ago.
Don't be fooled everyone, gold is definitely in a bubble right now, and when you look at gas prices, you don't compare them to precious metals, you compare them to other common commodities, like the price of bread.
What did bread cost in 1999? Cause gas was like 99 cents a gallon for regular, so...
Har. 100 years ago an ounce of gold would buy you 140 loaves of bread. Today an ounce of gold would buy you over 430 loaves of bread.
Now consider the dollar. 100 years ago a single dollar would buy you 10 loaves of bread. Today a single dollar won't even buy you a single loaf of bread.
Where fiat currencies have come and gone throughout history, gold has always been valuable. In ancient Rome, an ounce of gold would buy you a very nice toga. Today an ounce of gold will buy you a very nice suit.
The biggest net buyers of gold today are the Central Banks who print the money we use.
Each piece of paper they print or create out of digital thin air devalues that which is already in circulation. Yet gold retains her value since even before the days of Alexander the Great precisely because it can't just be created out of thin air.
Voyager I launched in 1977 and is today the furthest man made object from the Earth. In both Voyager I and II that have been sent from Earth both contain a remarkable item. A gold plated disc that contains information about Earth in the event that one day some intelligent being may find one of them. The disc contains information about Earth, her life, her people, her languages, the sounds of nature and music from the great masters such as Mozart and even Chuck Berry.
The reason they used gold? Because it is timeless. It does not rot, it does not fade, it is durable, unaffected by the harsh conditions of space, guaranteed to survive it's journey if the probes do not happen into a star.
And gold has intrinsic value as well. Stealth bombers wouldn't be stealthy without that layer of gold that covers the cockpit. Gold is used in medicine, computers, jet engines, satellites, astronaut helmets, reflects electromagnetic radiation, industry, finance, jewelry, electronics and chemistry.
And gas, you can get gas for 25 cents a gallon if you wanted using quarters minted before 1965 as they were 90% silver. That silver in those quarters is worth in dollars what it would cost you to purchase a gallon of gas. Even cheaper if you were to trade your gold coins in for dollars, a single gold dollar is worth around $27-$28 dollars today. You could buy between 7-9 gallons of gas with that single gold dollar (minted between 1849 to 1889).
Gold is a great way to preserve wealth because it never falls to worthless.