What If Everyone in the World Wanted a 1-oz Gold Coin?

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Jeff Clark
Casey's Gold & Resource Report
posted Sep 28, 2009

If we're right about where the price of gold is headed, the general public will someday clamor to buy all things gold. While gold stocks will be where the real leverage is, the rush will start with gold itself. As a gold editor, I have a very natural question: is there enough to go around?

According to the U.S. Census Bureau, there are 6.783 billion earthlings. Meanwhile, CPM Group, a highly respected industry organization, estimates there are 4.8 billion ounces of above-ground gold in the world. And this includes jewelry, electronics, and dental. So, even if everyone around the world volunteered to have their chain, cross, or tooth melted into a coin, we're already short. Those towards the end of the line are out of luck.

http://www.321gold.com/editorials/casey/casey092809.html

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“Gold is acting like the ultimate currency,” Gee Whiz!!

This isn't rocket science.

Gold Jumps to Record as Inflation Outlook Fuels Investor Demand
By Nicholas Larkin and Pham-Duy Nguyen

Oct. 6 (Bloomberg) -- Gold rose to a record on speculation that inflation will accelerate and erode the value of the dollar, boosting the appeal of the precious metal for investors seeking to preserve their wealth.

Gold futures climbed as high as $1,038 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar dropped as much as 0.6 percent against a basket of six currencies. Copper, zinc and sugar have led a 2009 surge in commodity prices.

“Gold is acting like the ultimate currency,” said Chip Hanlon, president of Delta Global Advisors Inc. in Huntington Beach, California.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a04.EcuZ...

Forget gold, buy silver

Gold is a rich man's piece of jewelry. Not much value, if you think about it, other than to give someone a nice piece to wear. Look at silver. It's about the most incredible metal on he planet, due to it's many practical and industrial uses. Hold a one once gold coin in your right hand, and a one once silver coin in the other. One cost $1,010.00 and the other, $16. You can afford the $16, and the chances of it's value doubling to $32 is far more favorable than gold going to $2,020.......wouldn't you say? There is less physical silver in the world today because when it is used in an industrial application, it's used up, spent, gone. Gold just sits in a jewelry case and collects dust. It wouldn't take much of a "poor man's" move to precious metals to send silver to the moon.

alan laney

I could not agree more.... A

I could not agree more....

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

WHAT is going on with gold today?

"In New York, spot gold rose as much as US$14.9 an ounce, 1.5 percent, to $1,081.2 an ounce."
http://www.saigon-gpdaily.com.vn/Business/2009/10/74890/

OK, I remember gold getting up around 1033 at some point about a year ago - I can't find that on the kitco 5 or 10 year chart. Huh?

I also can't find where kitco shows it hitting 1081 last night. Double huh?

I can't start t a thread about it, or anything here at the DP. Triple huh?

Odd morning.

Truth exists, and it deserves to be cherished.

How many people have $1,000 dollar bills?

I've never had one.

They do....

...they just don't want to pay for it.

I think everybody does want a gold coin

That's how we got in this mess in the first place.

What's nuts about these figures to me is the 90/10 rule of the elite. I'm not a math whiz, but if there's 300 families who control 90% of the gold, how much is left for the the rest of us?

exactly... A prudent man

exactly...

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

If everyone wanted 1 oz.

Government would confiscate .999 pure coins and bars from everyone, melt it down, mix it with a base metal, keep half of it for themselves, and distribute the balance to the public, and then remind them at the next election what they just gave out to them.

"The deepest sin against the human mind is to believe things without evidence." Thomas H. Huxley

lol........ there maybe some

lol........ there maybe some truth to that!

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

If the dollar is devalued, then the price of gold goes up

as does silver, palladium, etc. That would essentially price everyone out of the precious metals market.

Also, wouldn't a dollar devaluation also immediately cause a spike in food, fuel, and everything else we buy? What then? People will not be thinking about gold, they will be thinking about food, water, and energy.

How will a dollar devaluation be able to be tolerated? Will they make a war as this devaluation is done so as to distract attention away?

I've always been partial to...

lead nicely wrapped by a thin coating of copper. I know for a fact that there's plenty of this "metal" to go around!

Interesting idea, bullets as

Interesting idea, bullets as an alternate form of currency?

they will be.. A prudent man

they will be..

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

People who claim that there

People who claim that there is not enough gold demonstrate that they don't understand economics.

First of all, people want a lot more things than gold. They want houses, they want clothing, they want automobiles and they want food. They need gasoline, they need electricity and they need many other services. Gold is just a way to store wealth. Silver is another way. Real estate is another. We don't need enough gold to for everyone to convert all their wealth into.

That said, as more people begin to understand economics, as the scales drop of their eyes after years in the public (government) schools and the propaganda of the media, there will be in increase in the demand for gold. As demand increase, the price of gold will increase. Silver is an economic substitute for gold, so people will gravitate toward silver, which in turn will cause a rise in the price of silver. These increases in the value of monetary commodities will stimulate the production of more gold and more silver. This increase will drive prices down to some degree.

Yes, gold and silver are going to be valued at a whole lot more dollars than what they used to be. The old $20 gold piece may be a $1000 or even a $2000 coin. This just demonstrates how the value of the dollar has been stolen by the Federal Reserve and our politicians. Gold has maintained its value through the centuries.

The alternative to a return to gold backed money is a continuation of the thievery we have suffered under for almost a century. Don't listen to the criminals who tell us that there isn't enough gold.

If the dollar is devalued, then the price of gold goes up,...

as does silver, palladium, etc. That would essentially price everyone out of the precious metals market.

See above for the rest.

it won't price you out of

it won't price you out of the market.. smaller and smaller amounts of gold or silver will buy more and more.

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

you don't have a

you don't have a clue........

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

Even in Zimbabwe the people went to

black market gold, many scraping it out of the earth or panning for tiny nuggets (they're lucky to have this natural resource.)

If the price of gold is too high for most people they obviously wouldn't be trading 1 oz. coins, but maybe grains, dust. It doesn't have to be issued and stamped official by some government. Gold dust is still gold.

And of course there are other metals and commodities that can be used; no need for every single human on earth to hold expensive coins, in many markets they would be too costly to use practicably.

Solution....

A multi-precious metal standard so that there will be enough money to go around this means Gold, Silver, Platinum Palladium, Rhodium and Copper...if I'm missin any please let me know....

Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it, Almighty God. I know not what course others may take, but as for me, give me liberty or give me death.”
– Patrick Henry, speech to the Virginia Convention

“The Internet is the first thing that humanity has built that humanity doesn't understand, the largest experiment in anarchy that we have ever had." - Eric Schmidt

Brass...

like copper, is not a precious, but an industrial metal that has a value.

Don't forget Aluminum!

I have a hundred dollars worth of beer cans! ;-)

I think I heard Ron Paul

I think I heard Ron Paul talk about this multi-precious metal standard in his Q&A, he didn't seem to like it.

You know

One of the things that really disgusts me? The false value placed on materials and accepted by the general populace out of ignorance.

Take diamonds for example, carbon is the most common element on the planet.
Diamonds is not rare not even remotely rare, if people knew how common it was it would be almost worthless. Perfect, flawless diamond can be manufactured cheaply and is completely impossible to determine if it was man made or dug up outside of how perfect they are. It will almost always have a value due to its industrial uses, but the exorbitant prices it demands are nothing but and illusion by those who control the market.

Gold is no different it can be made, in fact it can be grown in water using the right frequencies and wavelengths propagated through the water. Granted this take some rather high tech gear but the process of doing so is known. That is one of the ways to make it there is more.

____________________________________________________
The Abuse of Greatness is when it disjoins remorse from power. - Shakespeare

The Abuse of Greatness is when it disjoins remorse from power. - Shakespeare

Gold is no different it can

Gold is no different it can be made, in fact it can be grown in water using the right frequencies and wavelengths propagated through the water

Frequency is just the inverse of wavelength.

In time they will probably be able to make it using nuclear fusion. I think the only reason they haven't used nuclear fusion is that the energy required to make gold is much greater than the price of gold. This thing has me wondering how close they are:

http://www.infowars.com/scientists-to-simulate-supernovas-wi...

Yes

Nuclear fusion is the only known technology for making gold from some other element. And the cost of the process far exceeds the value of the product.

No it is not the only way.

____________________________________________________
The Abuse of Greatness is when it disjoins remorse from power. - Shakespeare

The Abuse of Greatness is when it disjoins remorse from power. - Shakespeare

As far as the pub.acs.org article...

I think you've mistaken creation of new gold with a transfer of gold atoms required to grow nuclei by surface deposition. The goal may actually just be to chemically disperse the gold "to grow" into another shape.

I'm not a chemist, but maybe

Optical spectra of the clusters with identical compositions exhibited different profiles depending on the thiolate molecular structures. This observation implies that deformation of the underlying gold cores is induced by interligand interactions.

I'm not a chemist, but maybe if they had the entire article up (free) I could get a better idea if these clusters were identical in every way to real gold.

My link describes a laser

My link describes a laser that produces the "long-sought goal of ‘energy gain that has been the goal of fusion researchers for more than half a century." Any idea as to how much time till they are able to make gold economically?