New To Stockmarket Investing

[StonewallJacksonJenkins]

So when we talk about 2k or 6k an oz are we speaking in value of today's dollars or the future's collapsed dollar? I would assume we are talking about gold in the future, valued in todays dollar. Is that correct?

 

[liberty_Forever]

I'm talking about in both ; collapsed dollars AND in today's dollars

 

[StonewallJacksonJenkins]

I guess my point is: how much will an oz of gold be when a pair of shoes cost a grand?

 

[AceNZ]

So when we talk about 2k or 6k an oz are we speaking in value of today's dollars or the future's collapsed dollar? I would assume we are talking about gold in the future, valued in todays dollar. Is that correct?

That's today's dollars. If you take the 1980 nominal-dollar peak and adjust it to current dollars with the CPI, the result is about $2300/oz. If you use a more realistic estimate of inflation, the result is over $6000/oz.

I guess my point is: how much will an oz of gold be when a pair of shoes cost a grand?

Roughly speaking, the ratio of the price of gold to a price of shoes will stay the same. It will fluctuate one way or the other based on market conditions, but over the long term, it should stay relatively constant. So for a $100 pair of shoes today, the ratio is 9:1. If shoes go to $1000, gold should go to around $9000 based on today's gold price. GATA is arguing that today's gold price is being suppressed by central bank selling. So if the true price of gold is $2000 today (a ratio of 20:1 for shoes), then if shoes go up to $1000, the inflated price of gold could be $20000/oz.

 

[StonewallJacksonJenkins]

AceNZ- Thankyou for explaining it so clearley. It is easy for me to be be confused by the wording when talking about these rather complex scenerios that involve the past, present, and future events, especially since we are also throwing into the mix the government's fudged fiqures that most people tend to take at face value. Let it be a lesson when dealing with government fiqures that a nickle is worth 6 cents and a quarter is worth 3.

 

[AceNZ]

AceNZ- Thankyou for explaining it so clearley.

Happy to help.

Unfortunately, most of America is terribly confused about money and gold.