20 December 2011

Has Gold's Uptrend Been Broken?

I have a post up on the corporate blog featuring a Sharelynx log chart of the gold price.

There is also a very good video of why gold was (is?) favoured as money over other elements/metals in this post The Science Of Gold

And in response to this cheeky question from JR re that post "Is the Perth Mint claiming that gold is money due to its unaltering quality!?", the answer is No. The "What others are thinking" category on the corporate blog is for non official views and maybe the wording "gold is all but unrivalled as the outstanding candidate for money" could have been a bit more qualified in retrospect. :)

3 comments:

JR said...

The Perth Mint will come around!

There's no arguing with the science of gold, unless you are some kind of creationists?

squirrel said...

I'd like to add to JR's "cheeky response" that there is more truth to the idea of gold as an "un-altering quality" than expected.

When one tries to buy high purity metals in small quantity, gold quickly becomes less expensive compared to other metals. It's much harder to provide other metals with the same purity as gold in small amounts.

The scientific foil suppliers "Goodfellow" are an example. Taking the fist metal that I thought of, iron, Goodfellow supply 1 micron thick 1" square iron foil for 200 Euro, compared to 1 micron thick 1 " square gold foil for only 220 Euro.

I think this idea is exemplified in the images of Zimbabweans in their recent hyperinflation, buying everyday items with tiny pieces of gold. People have faith in tiny sub 0.1 gram gold pieces, and they should above any other material, for solid scientific reasons.

JR said...

Ahh... the science of gold squirrel, the science of gold. If you argue against it, you may as well argue the tides.

The quality of unallocated gold? Now there's a question (mark).