On Fri, Mar 5, 2010 at 8:29 PM, off_world_beings <no_re...@yahoogroups.com>wrote:
> > > *Can you point out the absolute absurdity of a statement like this below > from the news (its a year old, but its the same news today)?* > > "Gold jumped to a new three-month high at $980 per ounce on Friday as > traders bought the metal as a hedge against weakness in the dollar, which > fell to five-month lows against a basket of currencies." > http://in.reuters.com/article/domesticNews/idINLT26882620090529 > > *Hint: The paradox is right in the statement.* > > *Any takers?* > > *OffWorld* > > Ummm. We had to pay $850 an ouce for gold because the money we bought it with money that had lost its value? It's a paradox but still a wise hedge. It's a wise hedge because as the value of the dollar decreases, the price of gold will increase in terms of dollars. It would also become a wise speculation if you sell the gold for more dollars than wait for the dollar to increase in value against, say, the Euro, which will probably drop below parity with the dollar as the PIGS eat at the trough and Germany and others refuse to help the PIGS out. Makes no sense since whenever I go to Germany I'm offered snitzel or sausage in hundreds of flavors, most of them pork. -- I've got nothing against God. It's his fan club I can't stand.
