ejhickey

Inflation Scorecard: Gold Drives Expectations

Did the fed's test of "reverse repos" have anything to do with the price deop? The Fed has said it intends to use this method to drain liquidity from the system. However I wonder who believes this will work. Even the Fed's own website says reverse repos are only temporary and only last 14 days . Then the money drained , goes right back in the system .

Gold Poised to Move Higher

You could say the same thing about paper money. well maybe our paper money does have some other uses- wallpaper, insulation and toilet paper substitute


On Dec 28 10:09 AM otbricki wrote:

> Let us get this straight. Gold is not an investment. It does not
> return any income after purchase. It has no intrinsic value since
> it has no utilitarian value. It costs money to store. One can talk
> about fundamentals in that it is costing more to produce over time,
> but since owning it produces no income it truly has the same fundamental
> value as any other non-productive asset, i.e. zero.
>
> Gold is a hedge against currency value fluctuations. The only reason
> people buy and sell it because of its historical use as money. There
> is no other reason that it has any value.
>
> There is a reason that the value of gold drops in a famine. You can't
> eat it and you can't use it to produce food.
>
> Sooner or later people are going to realize that value of gold is
> psychological only, and our past obsession with this metal will be
> regarded as a historical curiosity.