jewelerdave
Hero Member
- Aug 29, 2007
- 848
- 96
- Detector(s) used
- I just follow my nose!...where the silver and gold goes!
Minelab 5000, Goldmaster, and a few others
XRF spectrometer, Common sense.
- Primary Interest:
- Prospecting
So all the time people seem to think that anyone in the business has the answer, well here it is.
prices act on emotion 90% and logic about %10
bad news always makes the prices go up.
Modern economies need to have inflation in order to show growth and to pay down large debts.
Think of it this way. 100 years ago, gold was $20.67 per oz. also, about 40 pesos to the oz in Mexico
today gold is over $1800 per oz in US dollars, and over 22,700 pesos for an oz.
My grandfather told me for 50 cents he could take a girl out and get burgers and shakes and a movie together, he also made 20 cents an hour working.
the thing is, its all relative.
Magic numbers An average working joe 100 years ago could make $5 a week. or a $5 gold piece per say. Today that gold is worth $450 take that and divide it by a 40 hour work week and you get about $11 per hour...what the average joe make working say a landscaping job or factory work or working as a bank teller or at an office...yeah. So what has gone up?
Its called inflation. all governments need it because it makes paying off debts easier. particularly if you can barrow at less than %1
world war II cost the US about 288 billion in 1940 dollars. Imagine if the US could put that money off paying for decades and say pay it now...Chump change in today's dollars for governments.
the US Civil war cost about 7 billion dollars in 1860 dollars. Imagine if you didnt have to pay that off for years.
So whats the answer for government spending? Inflation will cover it down the road. what does it mean for the people...well, your out of luck, But if you happen to buy gold and silver it does hedge against it and protects your money from being eroded away, Imagine how wealthy you would be if you held onto 40 paper pesos from 1920 and still had it today...it would be 40 pesos.
if you had bought gold with it, its now worth almost 23,000 pesos!
so its all relative.
prices act on emotion 90% and logic about %10
bad news always makes the prices go up.
Modern economies need to have inflation in order to show growth and to pay down large debts.
Think of it this way. 100 years ago, gold was $20.67 per oz. also, about 40 pesos to the oz in Mexico
today gold is over $1800 per oz in US dollars, and over 22,700 pesos for an oz.
My grandfather told me for 50 cents he could take a girl out and get burgers and shakes and a movie together, he also made 20 cents an hour working.
the thing is, its all relative.
Magic numbers An average working joe 100 years ago could make $5 a week. or a $5 gold piece per say. Today that gold is worth $450 take that and divide it by a 40 hour work week and you get about $11 per hour...what the average joe make working say a landscaping job or factory work or working as a bank teller or at an office...yeah. So what has gone up?
Its called inflation. all governments need it because it makes paying off debts easier. particularly if you can barrow at less than %1
world war II cost the US about 288 billion in 1940 dollars. Imagine if the US could put that money off paying for decades and say pay it now...Chump change in today's dollars for governments.
the US Civil war cost about 7 billion dollars in 1860 dollars. Imagine if you didnt have to pay that off for years.
So whats the answer for government spending? Inflation will cover it down the road. what does it mean for the people...well, your out of luck, But if you happen to buy gold and silver it does hedge against it and protects your money from being eroded away, Imagine how wealthy you would be if you held onto 40 paper pesos from 1920 and still had it today...it would be 40 pesos.
if you had bought gold with it, its now worth almost 23,000 pesos!
so its all relative.
