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Based on the results of QE1 and QE2, I expect the price of gold to rise, and the action to provide no long term benefit in terms of jobs or GDP growth. The ans
by politician 14y ago
Based on the results of QE1 and QE2, I expect the price of gold to rise, and the action to provide no long term benefit in terms of jobs or GDP growth. The answer to our problems is cheap energy, not more paper.
.. looks like gold spiked up 2% on the news.
- raverbashing 14y agoGold is already overvalued, I'm really not sure of its outcome
- GFKjunior 14y agoI think it's still on sale.
- nirvana 14y agoPlease share with us your calculations to determine the intrinsic value of gold. I don't think you can do it, which is why I don't have an opinion about its intrinsic value. But if you look at the price of gold as actually the price of dollars measured in gold, then things look much different. By that measure, taking monetary inflation into account over the past 100 years, gold is historically cheap.
- jstalin 14y agoThere is no such thing as "intrinsic" value. All value is subjective.
- raverbashing 14y agoWell, it's simple, isn't it Gold has "two values" (and one sale price) It can be a "money substitute" But it is also a mineral, with an extraction cost, and usage in the industry Now let's compare to oil Oil is very liquid (pun intended), it can almost anytime be converted into money. And then, used, converted into products or services. Gold has no such property. Yes, seeing "the price of dollar in gold" is certainly eye opening, still, the US has enough gold (and other resources) to keep the price of dollar (compared to gold) high enough.