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genewarneke

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  • Gold Options: Going to the Well Again [View article]
    You may find that this article trumps all of the articles mentioned above in terms of an 'underlying' reasonable rationale for determining the price of gold :
    seekingalpha.com/artic...
    May 15 01:32 PM | Likes Like |Link to Comment
  • Why I Sold My Gold [View article]
    “If fiat currencies crash, will gold be accepted in lieu of currency, and if so, why?”
    If you’re using gold to bet on the end of our financial world as we know it, then you better be sure that gold will work as currency. In searching for an answer, I couldn’t really find one."

    Mr. Elliot, you did not spend enough time looking for an answer. I live in a gold-bearing (river placer mining) community in the far southwest of Costa Rica. I buy gold grain and nuggets from locals who have been taking gold from the rivers for over 30 years. Multiple individuals sell me anywhere from 1 gram to 100 grams of 21 karat gold each week and on a regular basis throughout the year. I melt down most of it into small dore bars and store it in a bank safety deposit box.

    Very often, the people I buy from are owners of pulperias (front of the house mom & pop grocery stores) who trade their foodstuffs to the miners for gold. The miners have no other source of income.

    This is an example of gold being used as currency. This is not an isolated example. Wherever physical gold is present in the third world, it is used as currency. This has been going on for centuries and will continue for centuries.

    SiverKnight provided a good example of a society using gold as currency. Zimbabwe is in a hyper-inflationary situation, but it is interesting to note that Costa Rica presently is not.

    I chose to hold a year or two's worth of physical gold in my 'survivors kit' to get me through any hard times anywhere in the world I choose to live. It's my 'living' insurance policy.
    Dec 1 05:14 PM | 5 Likes Like |Link to Comment
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