and immediately recaptured $1350 per ounce both times. Gold is a special and rare metal. It is heavy, 2 1/2 times the weight of iron per unit volume. Gold is the most malleable of all materials. One ounce of gold can be beaten out to 300 square feet without fragmenting. Gold is eternal. It cannot rust, tarnish, oxidize, weather or dull even over tens of thousands of years. It is impervious to salt water and most acids. Gold can sit outside for 10,000 years of rain, wind, temperature extremes and harshness and will not change its mirror finish! Gold has a high coefficient of reflectivity and is the best conductor of electricity. If all the gold thus far mined by man in all of history were packed into one lump, it would be a cube 60 feet on a side. Gold has been recognized as a store of wealth since the beginning of civilization and has shaped human history in its relentless pursuit.
Gold is not the best conductor of electricity. Silver and Copper are both better.
And if all the gold mined in history were packed together it would not be a cube of 60 feet on a side,. It would be a tetragonal pyramid. I do think the fact that all the gold could be formed into 2 shapes is worth at least $50 per ounce!
You're right silver is the best. Gold is used on cell phone battery contacts, HDMI connectors, etc. Why is gold used when silver is cheaper and better? Because gold is clean. No tarnish. Over time, silver would develop a layer of oxidation which would impede electrical transmission at the point of contact. In an insulated conduit, silver would be better as a conductor, but at CONTACT POINTS, gold is superior. We're both right in different ways. Anyway, gold is up. On its way to $1300.
Your scenario is one of world famine and desperate times. Most of the time, 99.999% of the time that gold can be brought to a coin dealer and exchanged for that day's spot price in dollars. Then you go buy your loaf of bread. If you bought that gold on a down day and waited, you could buy two loaves of bread for the dollars exchanged. In 1920, and ounce of gold could buy a man a nice suit. Today it is still very true. Gold cuts across economies and is immune to inflation.
We should aim at least 2000. There are just too many big bubbles in the world right now. Any of them pops, they others will likely follow. Welcome to this new global economy. And the mother of all bubbles will inflate. Don't worry, hold the physical and enjoy the show....I'm continuing to accumulate.
Unfortunately, for gold owners, gold has no real utility and it's in a bubble that is rapidly deflating. If all the worlds gold disappeared tomorrow people would continue with the routines. What would happen if there were no iron or copper or any other commodity that has utility.
Same could be said about a Van goah painting or for that matter diamond - NO UTILITY. Gold is considered an asset class in India and Asia. Indians prefer to invest in real estate, gold, fixed deposit, bonds and equities in the order. Gold sales in India is down partly because of the govt restrictions and partly due to subdued economic growth. Govt/reserve bank are taming the current a/c deficit and once that is done gold import restrictions could be lifted. Indians presently need to pay more than the market price for gold. they also might be concerned about gold price projections coming from the western strategist. If gold does not hit $1000 by year end as predicted by goldman sachs, IMO demand from India will be back.