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Thread to track perception of gold & silver in mainstream media.
When lead story is "Why we are gaga over gold" it may be time to sell.
latest Atlantic Monthly (Nov 2010) "Uncle Sam’s Mysterious Hoard"
answers the question, "Why doesn't the US sell it's gold."
The article reached the correct conclusion, that the gold gives credibility to the US govt.
However, there were a lot of mistakes, such as "huge storage costs". No number was given, only a description of the "die hard" quality vault in the NY fed. The author seems not to have understood that gold is cheap to store because it's value per gram is so high!
Also, the value of the gold was described misleadingly to make it seem larger.
At $300 billion, it would fund the deficit for only three months. So the Au is puny relative to federal debt, which is 10 trillion and counting. It is also puny relative to the money supply, also on the order of $ 10 trillion.
Think: at some point the value of the gold and the money supply were equal, weren't they?---somebody please verify this.
When lead story is "Why we are gaga over gold" it may be time to sell.
latest Atlantic Monthly (Nov 2010) "Uncle Sam’s Mysterious Hoard"
answers the question, "Why doesn't the US sell it's gold."
The article reached the correct conclusion, that the gold gives credibility to the US govt.
However, there were a lot of mistakes, such as "huge storage costs". No number was given, only a description of the "die hard" quality vault in the NY fed. The author seems not to have understood that gold is cheap to store because it's value per gram is so high!
Also, the value of the gold was described misleadingly to make it seem larger.
At $300 billion, it would fund the deficit for only three months. So the Au is puny relative to federal debt, which is 10 trillion and counting. It is also puny relative to the money supply, also on the order of $ 10 trillion.
Think: at some point the value of the gold and the money supply were equal, weren't they?---somebody please verify this.
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