Comments on: The S&P 500 in gold terms ahead of tomorrow’s FOMC statement http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Wed, 15 Feb 2012 00:33:57 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: RodgerMitchell http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/comment-page-1/#comment-231996 RodgerMitchell Wed, 04 Nov 2009 18:11:18 +0000 http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/#comment-231996 What makes gold "real" money, as opposed to dollars and all other currencies? Gold is merely a metal, having minimal utility, less useful than lead, silver, copper, aluminum, sulphur or clean water. No person or nation guarantees its value, which is based solely on the "greater fool" theory (If I buy it I can sell it to a greater fool). By comparison, the value of the dollar is based on the full faith and credit of the United States, a far stronger collateral. Look at a historical graph of gold prices ( http://rodgermmitchell.wordpress.com/2009/10/28/fools-gold/), and you will see the classic "bubble." Just as with the tulip bulb bubble, some day someone will wake up and say, "Hey, this stuff really is worthless," or there will be a huge gold find undersea or in the antarctic. Then the gold bugs will suffer the same consequences as in the early 1980's. Rodger Malcolm Mitchell What makes gold “real” money, as opposed to dollars and all other currencies? Gold is merely a metal, having minimal utility, less useful than lead, silver, copper, aluminum, sulphur or clean water.

No person or nation guarantees its value, which is based solely on the “greater fool” theory (If I buy it I can sell it to a greater fool). By comparison, the value of the dollar is based on the full faith and credit of the United States, a far stronger collateral.

Look at a historical graph of gold prices ( http://rodgermmitchell.wordpress.com/2009/10/28/fools-gold/), and you will see the classic “bubble.” Just as with the tulip bulb bubble, some day someone will wake up and say, “Hey, this stuff really is worthless,” or there will be a huge gold find undersea or in the antarctic. Then the gold bugs will suffer the same consequences as in the early 1980′s.

Rodger Malcolm Mitchell

]]> By: zebov http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/comment-page-1/#comment-231771 zebov Tue, 03 Nov 2009 19:30:38 +0000 http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/#comment-231771 So, BR, does this count as that breakout over $1050/oz you were looking for? So, BR, does this count as that breakout over $1050/oz you were looking for?

]]> By: Ned Baker http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/comment-page-1/#comment-231758 Ned Baker Tue, 03 Nov 2009 18:28:32 +0000 http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/#comment-231758 I'll say the same thing I said on Kedrosky's blog: If I were king for a day, I would mandate that all current discussion of the dollar's decline must include graphs back to mid 2007. I’ll say the same thing I said on Kedrosky’s blog:

If I were king for a day, I would mandate that all current discussion of the dollar’s decline must include graphs back to mid 2007.

]]> By: SINGER http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/comment-page-1/#comment-231741 SINGER Tue, 03 Nov 2009 17:21:24 +0000 http://www.ritholtz.com/blog/2009/11/the-sp-500-in-gold-terms-ahead-of-tomorrows-fomc-statement/#comment-231741 that's awesome... How long till one world currency? that’s awesome… How long till one world currency?

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