Quote:
Originally Posted by The Demon
Actually, it's ALL based on the supply of gold, I have no idea where you learned economics 101, or if you ever did. Basic economics deals with supply and demand. The less the supply, the higher the prices. The greater demand of that rare supply, the HIGHER the prices go.
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Yeah, I agree eco 101. The problem is we don't have less supply and we're not running short on it anytime soon or ever. The price isn't increasing because we have less gold.
You can still find gold laying in Rivers in America, let alone what's in the ground around the world. If it's demand for use in products has gone up, that is still so minor in the overall amount of Gold - that we can throw our products away (trash the gold).
When you buy gold, you're not actually buying gold - you don't take away gold from the supply (in most cases). All someone has to say is, they aren't paying on those notes - and it's over.
No different than the money supply or stocks, you're buying a tiny fraction of real value and the rest is bullshit.