Originally Posted by watermock
I pasted an article how gold price on the comex is fixed (in particular by the US fed) even more than oil.
China and India are hoarding Gold both privately and publicly, along with other commodities both refined and raw because of the uncertainty of the dollar.
If all the options were taken delivery of, the spike in gold would be at least 1000.
Why? Crude Oil is worthless unless it's refined and consumed, all the gold in the world could be placed in 1 vault for a million years..there is no place to even put all the oil if it were to be taken delivery of.
The thing about gold is that yes, it's a precious metal but it's only real function is for jewelry or for hoarding in a vault somewhere.
In other words, it has no real use (yes, yes, there are some practical applications but overall it's a static commodity).
If everyone's economy tanks, if the world goes into a deep depression, if the US economy goes down the stink hole, what will all of this do to the price of gold? In other words, who is gonna want gold and why would they want it?
What does it matter if you have a billion $ in gold if no one can use it?
I'd rather be financially vested is something that everyone NEEDS. Titanium, platinum, etc...