This is a discussion that needs to be started...

[GlobalWealth]

Gold is not money no matter how much some want it to be.

Merriam-Webster definition of money: something generally accepted as a medium of exchange, a measure of value, or a means of payment

"Has been" is not the same as "is"

and it still is.

China is also building cities and housing that no one lives or works in.

Do your homework here. They are building them but months later they are filled. The Chinese are building them in expectation of need. They aren't staying vacant for more than a few months. Don't believe everything you see on CNN or from Jim Chanos.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Lumpy]

GlobalWealth, a dictionary definition really is of no use in this discussion, as I'm sure you know. However as you brought it up, Gold is NOT "generally accepted as a medium of exchange" in the U.S. nor most advanced economies of the modern world. I know you WANT it to be, but it just isn't and that is not a debatable opinion it's a fact. Gold is no more money here than a collectible baseball card. You can buy it, sell it or hold it but you can not readily exchange it for goods and services. It can go up or down in value based on what someone else is willing to buy it for.

As for China building empty cities and huge multi-family housing going vacant, again, it's you that needs to "do your homework" on this. Again, fact, not opinion. I manage significant assets in emerging markets and I travel to China on business several times a year, so I guess I have done some homework on this. I have personally seen several beautiful, brand new housing complexes vacant for 2 years running. I kinow of MANY others all over the country.

Again, don't believe everything you see on you tube put out by gold sellers telling you China is brilliant and buying gold so you should also. China has very restrictive investment restrictions for wealthy nationals. It is very hard for them to invest their wealth outside the country and many/most have no trust in the very shady Chinese stock market. So, they are currently heavily - very heavily - "investing" in two asset groups, Gold and residential building development. This is the primary reason real estate is also a MAJOR bubble in China and the buildings are built for no one now more often than not.

As I said before, there ARE monitary arguements as to why Gold may be one of the hedges against devaluing of our currency over time. However, the histerical arguements and the "China is cornering the market" ones just don't hold water. The developed nations of the world have lost all fiscal control and thus have few ways to solve the issue aside from printing more currency, so "value storers" make sense for the forseeable future, IMO. However, Gold has run up a LOT. From hype? I contend that some portion of the current price is hype. Gold is valuable as a potential storer of welath IF you buy it at a reasonable price - like ANY investment or item.

 

[GlobalWealth]

Gold is NOT "generally accepted as a medium of exchange

Again, I disagree here. There are many places in the world where gold is accepted as a medium of exchange. Certainly paper currency has more circulation than gold coins or bars, but I know several businesses that accept payment and pay for services using gold and/or silver.

I've seen firsthand in many countries where people immediately trade their paper paycheck for gold and silver at the local coin shop. I've seen shop owners take their daily profits in paper currency and stop by the coin shop on the way home. I would say this is less prevalent in the US, but the trend is growing.

This is obviously more closely related to 'store of value' than 'medium of exchange', but the fact remains that people all around the world still consider gold to be money.

Is gold in a short term bubble? Who knows? It's a moot point. 5000 years ago gold was money. 1000 years ago gold was money. 100 years ago gold was money. Today gold is money by its very definition and 1000 years from now it will likely continue to be as well.

Your original statement was 'gold is not money'. This is my arguing point here. By all definitions, including your own acceptance that gold is a store of value, gold is still money.

Again, don't believe everything you see on you tube

Thanks for the advice, but I don't even own a tv, so this is a non-issue.

 

[Kak]

IMO silver would be better for bartering and payment than gold because of the lower per oz value. Your coins are worth a reasonable amount like $20-40 usually gold coins can be worth thousands.

Sent from my GT-P7510 using Tapatalk 2

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.