Day Trading & Forex Forum

SAINT

A 2006 estimate of all the gold ever mined totaled 158,000 tonnes.

One tonne of gold equated to a value of US$30.27 million as of February 14, 2009 ($941.35/troy ounces).

The total value of all gold ever mined would be US$4.78 trillion at that price.

Considering that world wealth is around $92 trillion, should gold be in the thousands?

or is a large part of the $87 trillion false?

N Rothschild

"wealth" doesnt = money though! us wealth is about 50 trillion..thats peoples homes etc etc..but is there enough money to buy all these homes? nope! Just because something is valued at something, doesnt mean it could be converted to cash.

And yes it is false, fiat currencey is one giant ponzi scheme

__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

The Baptist

I am impressed you have come a long way in a short time, who is the greatest issuer of Fiat Paper again?

N Rothschild

still doesnt mean i believe in infaltion and rising gold

__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

SAINT

I see big writedown risk too. The assets would revert towards the mean.
The ending of the gold standard in '71 has seen a huge glut of printed money

.

I guess what i'm hinting at, is that a collapse in the dollar doesn't automatically mean a higher gold price.
It just means higher demand. The gold price wouldn't be priced on a 90 trillion economy, but a 50 trillion or 30 trillion if there was big deflation. Gold holds its value but not necessarily its price.

The Baptist

Dollar devaluation (GBP too) = Inflation for those economies.

It does not require any additional demand for commodities as these are priced in Dollars, in fact it may allow for a reduction in demand and still see appreciation, on the basis that demand can't fall as much as the currency revalues downwards.

N Rothschild

thats only if the dollar continues to devalue

seeing everyone thinks the dollar is going down the pan, its almost certainly not.

__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

montmorencyt2w

Of course when you cash in your winnings (on gold), it won't be worth anything :-)

__________________
Regards,
Mike
--
Still learning my trade.

"Trade what you see", but make sure you are looking from the right viewpoint.