bicycle rhymes
bicycle rhymes
Another strong month for the price of gold and silver, gold stick around nine hundred dollar range of silver and piercing fourteen dollars ounce.
Now more than ever, it's just a good idea to hold some gold and silver investments. Price Gold and silver are high now, and all evidence of the likelihood that they have not yet reached their peak.
The investing in gold and silver which has chosen to start investing in metals a few years ago, before the recession has been made "official" familiar with a good profit on their investment, but even those were a little late to catch the gold rush are themselves a pat on the back anyway.
Of course, these increases in gold and silver prices is not surprising to anyone who knows a little about the economy. Since we were taken off the gold standard, the dollar has been in a constant state from top to bottom, while the value of gold and the money remains essentially the same in basic meaning.
Of course, the value of the dollar, gold prices and real money go and get off at the same rate as the dollar, only reversed, so as to justify the above statement … there is only so much precious metal in the world. By Therefore, the current literal value of an ounce of gold will always be an ounce of gold. Like a loaf of bread that is never worth as much a loaf of bread is worth an ounce of metal is not worth an ounce of metal.
The dollar, on the other hand, that knows what is really worth? The actual value of the dollar is the paper it's printed on, and that's all. The only practical purpose, a dollar can never have is that you can bleach and use it to take notes. That sounds crazy, but think about it: A penny contains more than a copper penny.
Now … Ten years ago you could buy a laptop hundred pages for fifty cents. Now it is a few dollars. At this rate, in ten years older, a laptop is in the field of eight dollars. If inflation continues to quadruple the price of a laptop every ten years, then end it will be cheaper to write only about the money!
So with this in mind, here's something to remember about prices gold and silver: they have almost nothing to do with real gold and silver value.
Price of gold and silver May be an approximation of their real value, but the real value of an ounce of silver is, again, an ounce of silver.
As such it would be wrong to look at gold and silver prices and say "gold is up". Gold is up, gold never becomes somehow more or less rare it is now. So, when gold and silver prices rise, the real value does not at all, but rather the value of a dollar is falling.
In other words, the dollar, initially intended to be nothing more than a certificate used as a placeholder and tied to the value of gold, became a separate entity. Since we took the the gold standard, it simply has not been reliable.
Unfortunately, the dollar is what makes the world go 'round. You can say "I do not like cash, because it is unreliable", but how will you pay your bills? We have little choice but to follow with the notion even mad that everyone should buy that paper money has actually any value.
It's almost a matter of existential doubt. We a hand of someone believing that dollar is worth something, and hoping they believe that is something, when in fact we are all entertaining fiction, and we know in our hearts … it's just paper.
So … that is where gold and silver investing comes in. You can count on paper to represent a dollar value "abstract" when you buy a bottle of Coca Cola or save a little gas in your car, but we can not rely on this value that must be the same ten years from now.
So … money is not a worth about fourteen dollars per ounce at this time. Silver is worth its weight in silver, and always will be. That's how you measure the money real.
Learn how to track gold and silver prices with http://GoldSilver.org and receive your free “2009 Insider’s Guide To Precious Metal Investing.”
