Quote:
Originally Posted by bnorth
I would think with the vast amounts of it available it would be worth WAY less than it is. I have no idea how pricing actually works as they are like diamonds and the amount available has little to do with value/pricing.
|
True. But the counter argument is that fiat paper currencies have, will and must continue to be debased. This means that the price of alternate currencies, e.g. gold and silver, not subject to government debasement must continue to rise in terms of fiat paper currencies.
But then again how many pounds of copper, pounds of butter, dozens of eggs, pounds of coffee, bushels of wheat or corn, whatever, did the $20.67 price of a troy ounce of gold buy in 1920? If the same calculations are done today, gold has appreciated leagues more in price than any of these other commodities/goods.
But I'm not making any predictions. I don't know and I'm not willing to even hazard a guess. Markets aren't rational. They just "are".