Comments on: Silver Taste. Base Metal Money.

By: StingingNettle

StingingNettle — Wed, 22 Apr 2009 15:42:27 +0000

Tom needs to learn that buying silver is a form of savings. And savings rates are going up. And trusting in banks are going down. So the demand for silver as money is strong. So how easy it is to understand!

By: Jon KIng

Jon KIng — Wed, 22 Apr 2009 15:22:19 +0000

Yawn…gold. Yup, with every housewife holding gold parties and every TV commercial about gold it will take off any day now. The masses are always right so if everyone on the planet is touting gold, it must be a great investment!! Get a clue, gold is as common as air these days.

By: Tom Cole

Tom Cole — Wed, 22 Apr 2009 03:13:01 +0000

“Demand is so high that they ran out of room to store the stuff!”

Uh, it seems to me that if demand were high, they wouldn’t have any to store. Isn’t it a perverse world in which we live when huge piles of stuff lying around unused is sign of “strong demand”.

By: Junior Mogambo Ranger # 777

Junior Mogambo Ranger # 777 — Tue, 21 Apr 2009 22:21:34 +0000

From the Mogambo guru’s latest-
….gold “fell from an estimated 4.5%-5.0% of world private sector wealth in the late 1960s to roughly 0.2% of world financial assets by the early 1990s, and stayed low until the past few years”, when things started to turn around, and “by the end of 2008, gold’s share of global financial assets may have increased to around 0.6%.”

Perhaps the Mogambo himself or a fellow Junior Mogambo Ranger can tell me if I am right or wrong in my reasoning:

My view-
From the 1960’s to the early 1990’s, the amount of non-gold investment wealth increased due to inflation (more shares of stock issued and more paper money created)
while the amount of gold that came onto the market for investment wealth was much lower in comparison (its easier to print up a million dollars in shares or a million dollars in paper money than it is to mine a million dollars in gold.)

Since the quantity of non-gold investments increased much faster than gold investments (more shares for sale, more bonds, more paper money), maybe the percentage of gold owned by investors declined Not due to gold being a bad thing to own,
but due to non-gold investments crowding out gold by a percentage basis
(More paper than gold so less gold owned percentage wise.)

We should also remember the ability to own gold was restricted for many in the US and abroad. Until 1971 the only way to own gold legally in the US was in the form of pre-1933 gold coins. I had read that Great Britian also had at one time restricted the amount of gold its citizens could own, only 4 Sovereigns per person or something like that.
By restricting the type of gold that could be owned, the percentage of gold owned by the private sector as wealth would also alter the gold as private sector wealth percentages.

Anyway, that is just what I think.
Am I right, wrong, half right or what?

By: 1shotrising

1shotrising — Tue, 21 Apr 2009 22:13:14 +0000

And where does platinum fall into all of this?

By: Junior Mogambo Ranger #777

Junior Mogambo Ranger #777 — Tue, 21 Apr 2009 22:01:53 +0000

Great information as always Mogambo!
(and I didn’t forget the exclamaton point this time!)