# Peter Schiff: Gold At $10000/oz



## Anonymous (May 14, 2010)

http://www.youtube.com/watch?v=7fnie51Elxo

What is your take on this ?

P.S. I don't know if there is a method to embed videos, if there is, please let me know and I will fix it.


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## Oz (May 14, 2010)

If the dollar becomes trashed then it could sell for a trillion dollars an ounce. People get too focused on pricing gold in the dollar. Just look at what happened to Iceland last year or Greece and how it took down the Euro. Look at the price of gold there on a 1 or 2 year chart and it really looks ugly as thier currencies whent lower.

To support my above comment on trillion dollar gold, the Zimbabwe dollar when introduced in 1980 was worth $1.47US. By January 2003 the 2 currencies were equal, but by January 2009 (just 6 short years later) the official exchange rate was $1US to $100,000,000,000,000,000,000,000 Zimbabwe dollars. Now if the world priced gold in Zimbabwe dollars it would look as though the price crashed by 10 to the 23rd power to a US dollar buyer of gold in that 6 year time frame. 

This is why I commented (on the gold price guessing contest thread) that I hope the dollar price of gold did not double in the short term as that means the money I am stuck with using as a US citizen just lost a huge amount of its value. Having said that almost all countries are devaluing their money. This is why gold has recently set record highs in every major currency I am aware of. I understand the need to price gold in the local currency people live with but to see the true increase in demand/value one would have to average the top 20 currencies as to gain or loss in the gold price. 

So if Peter Shiff is correct that would mean either that the dollar lost 85% of its value compared to the rest of the world or on a global scale people lost 85% of their faith in all of their currencies (the second is the more likely scenario with $10,000.00 gold by year end). Inflation of currencies is the hidden tax. If this is confusing, then a simple yes, gold is going up as people globally are loosing their trust in their local currencies. 

Forgetting gold for a moment, has anyone here from any country seen the price of daily needed items going down?


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## Noxx (May 14, 2010)

When I started to follow the gold price, in no way I believed that it would go up twice its price.

Now it's part of my company's plan to invest in gold and keep it in medium/long term.


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## EDI Refining (May 14, 2010)

Good Post Oz
Everyone DYODD


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## Oz (May 14, 2010)

Noxx said:


> When I started to follow the gold price, in no way I believed that it would go up twice its price.
> 
> Now it's part of my company's plan to invest in gold and keep it in medium/long term.




That would be near the beginning of 2006. I already knew you were a sharp minded young man Noxx, but I am curious if it was about the “bling” that attracted you to gold or something else at such a young age.

Speaking for myself, I am a fourth generation coin collector so by default I knew monetary history as a wee little lad. Seeing the US no longer able to afford to mint coins in silver spoke volumes to me even at that age. Now they lose money minting pennies and nickles even after they removed almost all of the copper and nickle from them.


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## Irons (May 14, 2010)

A fiat currency is only worth what people think its worth. Instead of comparing how much Gold is worth relative to fiat currency, we should think of Gold as a constant and compare what the currency is worth against Gold.

Do you really want to exchange Gold for a currency of doubtful value?


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## chemist (May 14, 2010)

Irons said:


> Do you really want to exchange Gold for a currency of doubtful value?



If you don't exchange it for currency, what do you do with it?
This is a serious question. We can't buy food or shelter or cell phones directly with gold. At some point it has to be converted to a fiat currency so that its value can be used. 
How do you know when to make the exchange?


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## butcher (May 14, 2010)

chemist how many bannanas for that dollar? 
Who will give me bannanas for my gold? 
bet I get more bannanas.


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## Noxx (May 14, 2010)

Actually, you can pay with gold. Simply think of e-gold.

There are more and more stores taking e-gold payments now.

Oz, the bling attracted me of course ! But also the monetary aspect and the chemistry involved. So much fun ! (It is still now) 8)


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## aflacglobal (May 15, 2010)

25lucas said:


> P.S. I don't know if there is a method to embed videos, if there is, please let me know and I will fix it.



Noxx, what happened to that function ?


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## Anonymous (May 15, 2010)

chemist said:


> Irons said:
> 
> 
> > Do you really want to exchange Gold for a currency of doubtful value?
> ...



In relation to Oz's post about zimbabwe and it's hyper-inflation. 

They now use gold to trade there. You can also find some video on youtube.


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## chemist (May 15, 2010)

butcher said:


> chemist how many bannanas for that dollar?
> Who will give me bannanas for my gold?
> bet I get more bannanas.



I suppose that it depends upon how big a banana you have, butcher. :lol: 
(Personally, I don't buy bananas.)

I understand your point, but in most countries you will starve. Outside of Zimbabwe, I have never heard of anybody who sells bananas AND deals in gold. It is necessary to have two transactions to turn your gold into bananas. That's where the fiat currency becomes necessary: to facilitate the two transactions.
Then there are practical aspects. For instance, what is the smallest gold coin or gold bar that is easily traded? 5 grams? This would have to be your minimum purchase price for any transaction. So, the smallest quantity of bananas you could buy would be 5 grams worth. That's $192 US right now. What do I use if I only want to buy one banana?
A fiat currency becomes inevitable.


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## patnor1011 (May 15, 2010)

Chemist you can use smallest silver bar for one banana...


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## Irons (May 15, 2010)

patnor1011 said:


> Chemist you can use smallest silver bar for one banana...



Like it used to be within my memory when coins were made of silver.


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## butcher (May 15, 2010)

chemist, maybe I just cannot follow what you are talking about.

if I cut firewood to eat, I can trade firewood for food.
I can directly trade wood for bread, or trade wood for gold, or trade wood for green government paper, or someones check and use digital money, to buy the bread.

bottom line it is wood for bread. or wood for bannanas.
gold like fuel, or food will always be a source of money.

from what I see it's value is far passing the value of that green paper money our goverment is printing out and saying it is worth bannana's, but is no longer backed by bannana's, opps I mean GOLD as set in our constituton.

say I have a pocket full of euros, they will not take them at my local gas station.
gold can be traded for euros, dollars yien, peso's, and banana's, countrys trade gold for oil.

if I write a check for gas they take my check on promise to pay, when I get a dollar it is just paper it is just a promise to pay, and should be backed by gold, now that it is no longer backed, its value can fluctuate with how many paper dollars someone prints out, not even backed up with bannana's, gold on the other hand is always backed up and I can alway's get bannana's with it. look at our confederate dollar how much was it worth after the cival war? but those gold coins still have value today, actually even more value.

we can make an agreement on how much gold powder by weight to trade for a single bannana, some will depend on how bad I want the bannana, and how bad you want the gold, there were times in history where gold was traded for salt on almost a pound for pound ratio as salt was needed so badly to preserve meat.


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## EDI Refining (May 16, 2010)

Ladies and Gents 
Huge topic, cant really be covered in a post or a thread

Here's a 1hr video - please take the time to view 
http://www.silverbearcafe.com/private/05.10/meltup.html


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## pinman (May 16, 2010)

Thanks for the link p3m. Just finished watching. Highly suggest other members take the hour to watch this.


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## Barren Realms 007 (May 16, 2010)

That was a good video.


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## lazersteve (May 16, 2010)

Excellent video,

I'm a proud twenty percent-er! Are you?

Thanks P3M very good video!

Steve


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## patnor1011 (May 16, 2010)

oh my...
i am optimist but knew that something is going on long time. well again to the bank and swap more of my fiat papers in their already f*cked ballance sheets for shiny small silver coins. /p.s. i like banas so i need more small silver rounds /
thanks for the link...


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## chemist (May 16, 2010)

You people are scaring the heck out of me. 
Now I have to go out and get more gold!
And worse, now I have to convince my wife that we have to get more gold.


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## Barren Realms 007 (May 16, 2010)

chemist said:


> You people are scaring the heck out of me.
> Now I have to go out and get more gold!
> And worse, now I have to convince my wife that we have to get more gold.



You are fighting a loosing battle with that one. 8)


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## shyknee (May 16, 2010)

holy hyper macaroni :shock: 
thanks P3M a real eye opener :shock:


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## patnor1011 (May 16, 2010)

jaysus what scares me even more is that in case of serious economic meltdown, hyperinflation and major crisis I will surelly miss this forum and all of you people..... :mrgreen: 
well i suppose internet will be killed by government in case of some big social unrest....


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## Barren Realms 007 (May 16, 2010)

patnor1011 said:


> jaysus what scares me even more is that in case of serious economic meltdown, hyperinflation and major crisis I will surelly miss this forum and all of you people..... :mrgreen:
> well i suppose internet will be killed by government in case of some big social unrest....



IMHO The internet has gotten to big for the gvt to squash it. Even if they do it will just go private back to bullitin board sytems like before with individuals running thier own systems.


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## Oz (May 16, 2010)

Gold has now just pased the 1,000 Euro point.


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## Oz (May 17, 2010)

Barren Realms 007 said:


> chemist said:
> 
> 
> > You people are scaring the heck out of me.
> ...



I have only had the time to watch a third of this video so I will reserve my comments on it until I have seen it in full (seems accurate so far).

I will say that convincing the wife is typically a non-issue though. Simply explain your concerns and that you wish to hold a certain percentage of your joint savings in precious metals. Then go on to explain that the best way you see to do that is to buy her precious metal jewelry to wear. Historically jewelry has been exempt from government confiscation. Do not worry about her willingness to sell for profit, as if things do get real bad it is a woman's instinct to keep food on the table and a roof overhead beyond any other concern.

It goes without saying to most members here that the jewelry will be bought below spot prices as scrap. You would be amazed at what has been sent to me as "scrap" jewelry. She would love having such a jewelry waredrobe to wear, all the time being able to brag about what her man bought her this week to her girlfriends.


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## WIZZARD (May 17, 2010)

All of us are like Canary's in the mine. Most of you will see it coming and know when trends are taking place. The TV adds asking you send in your gold for big dollars is very prolific. Those with Carnal Knowledge, see something is afoot. All the adds to buy gold and showing 100's of coins is all over the air ways. 

In 1933 the gold standard was pulled out from the economy for a global reason, no so much to control USA's dollar but appease a global condition. Everyone in the USA had one year to turn in all your gold, except, for small amount, at $22 a ounce. Once the year was up only other country's holding paper redeem it for gold at @ $36.00. Congress passed laws concerning who, when, and how to transfer gold. If you violated the new laws you could be sent to prison for 10 years and a $10,000 fine. The golden rug was pulled out from under our feet and a nasty old straw one in its place. WW II became the focus and world leaders made some very interesting packs regarding precious metals. 

Nixon in 1971 returned gold to a so called free market and it jumped to $71.00 over night. How is it that all the countries holding gold paper could get real gold for it and the rest of us would go to jail...........Who's got the gold now? If it were not for the recovering of E gold, or other scrap, those who believe in a free market will find it hard to do what we all like, or need to do as the value of this forum is paramount. There are those still pull strings, levers, and turning wheels, behind the curtain. 

You all know the golden rule..........


Wizzard


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## machiavelli976 (May 18, 2010)

scary movie ! should be watched by entire world. i'm waiting Morgan silver scum end. when!?


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## patnor1011 (May 18, 2010)

heh i am waiting for end of that silver story too. I just about 2 months ago converted half of my savings into silver rounds lol...


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## kssurplus (Jun 3, 2010)

I am all for 20 %

Terrific video and my thanks for sharing it.

I also have some of that silver.


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