Tuesday, February 4, 2014

Question of the Day

Is gold a commodity or a currency?

Stephen

25 comments:

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    1. Stevie, in my humble opinion, you're correct. It's both a commodity and form of exchange. Thanks, my friend.

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  2. It is really a commodity, as you cannot *easily* use it as a currency.

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    1. Very true on both...although many nations do on occasion pay debt and/or interest on debt with gold. Thanks, B...and please, don't be a stranger. Oh, I too take gold in exchange, and silver, and ammo, and fresh eggs....well, you get it.

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  3. Can, meet Worms. Worms... Can.

    Heh.

    stevierayv is right. In our modern gravity-defying, value by governmental diktat world... it behaves more like a commodity (which is what TPTB want.) However, gold and silver were both created by God to be means of exchange and that proper usage shall return and is returning. Even Homo sapiens isn't dumb enough to maintain an endless trust in paper.

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    1. Some days it leans - commodity, others - currency. Really is a trick question, isn't it. Thanks, David.

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  4. Only barely a commodity. From Wikipedia:

    "A total of 174,100 tonnes of gold have been mined in human history, according to GFMS as of 2012. This is roughly equivalent to 5.6 billion troy ounces or, in terms of volume, about 9261 m3, or a cube 21.0 m on a side. The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry."

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    1. Correct, only barely....thanks, my good friend.

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  5. As a former stockbroker, I'll confirm stevierayv's answer.

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    1. That Stevie is a sharp fella isn't he....thanks, my good friend.

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  7. I think it depends when you want to 'spend' it. If you plan on using it AFTER the/a zombie apocalypse .. well, I don't think it will be of much use. It's always good to be diversified. Gold, silver, cash, Scotch, canned goods, toilet paper, matches .. some of which will be worth their weight in gold when/if TSHTF.

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    1. Great answer, Mrs. Mac....I'll take it in a New York moment for this Ruger taking space on my desk....thanks, and btw, thanks for the click...and welcome. When time allows I'll properly thank you.

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  8. Everything is a commodity and money is just the value of a commodity (time) therefore it really is a commodity itself as well. In essence there is no difference between the two, commodities or money. They just represent different values by volume and suffer different levels of government oppression for their use.

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  9. Stephen,

    Commodity my friend!!! Bartering Tool :-)

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  10. I think commodity. When gold coins were in circulation and had a face value I guess then it would have been both.

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    1. The currency is still valid. The price of other commodities and trade goods are inflated beyond the true value of gold, and silver. Thanks, my good friend.

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  11. Got me thinking, After 0bama gets done will the dollar be a currency or a worthless commodity.

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  12. In fact its already a piece of worthless currency. But, that's just me.

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  13. Currently a commodity, tomorrow a currency

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