What would it really matter if GOLD were to reach $27,500.00 per ounce? It would not harm the economy in any way, shape, or form. Oh, I know that big brokers with HUGE short positions would have to cover at losses but let's face the music, they are really just crooks anyhow. Can anyone disagree with this statement? Incidentally, I do like big banks and I know that they are an important and necessary part of the economy. You may disagree but how would modern humanity really function without them?
A sky high value for gold would only really help the economy recover and to stabilize the economy, worldwide. This is because gold is priced in world currencies, yes paper money(for all you "paper money" haters out there), therefore gold actually helps "float" all of the paper money that is in the economical system.
I have a question for you, when you purchased lunch the other day didn't you use some form of "paper money", to buy lunch, or at least for the tip? Paper money is certainly needed in todays world of over 7 billion inhabitants. We are fortunate that someone invented it(yes, money is just one of the many inventions that has helped make life easier for most people. BTW, it is called "paper money" but it is actually made out of 90% cotton,(for those of you who do not yet know this). Most informed people, by now, already realize that paper money is actually made out of 90% cotton. There is some ink, and other stuff on there too. Oh yea, the $1, $5, $10, $20,and last but not least the $100. It's hard to really imagine that only five distinct bills make the economy of the United States function so smoothly.
In no way does a high gold price actually hurt paper money, as many treasury secretaries often have feared. They are simply reacting with little or no thought process. They see gold going higher and automatically think... Something must be done to slow this down. They are completely wrong. There is nothing negative to worry about with a sky high gold price, only positives. Take that Ben B. & Tim G! LOL.
Ask yourself the question: Does the fact that some artwork, for example, that sells for hundreds of million per painting, really harm anyone? No it does not, although most rare paintings only cost around $5.00 to produce. Gold costs much much more than a rare paintng to produce just one gold ounce.
Yes, a gold ounce price of $27,500.00 would really be no big deal. It could only really help the entire worlds economies. Time will tell the future, but in the mean time we will all keep contemplating future events.
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