Annual production and demand are not relevant when it comes to
determining the long term price of gold. At best, they are only short
term influence. The reason is because of a very large above ground
inventory that is at least 40 times larger than annual
production/demand numbers. The past
I think that this is the article that Ken Griffith refered to this
afternoon.
http://www.larouchepub.com/other/2001/2834chervonetz.html
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Hello David,
very good question!
If the entire world switched to using e-gold today, for all
their direct
debit financial transactions, is there enough "gold"
currently available to "back it?"
Basically yes - but that would mean that gold
David Barrington wrote:
Question ???
If the entire world switched to using e-gold today, for all their direct
debit financial transactions, is there enough gold currently available
to back it?
Probably not at $300 an ounce but there would be at some much higher price.
--
Life, Love and
- Original Message -
From: David Barrington [EMAIL PROTECTED]
To: e-gold Discussion [EMAIL PROTECTED]
Sent: Saturday, September 08, 2001 11:42 PM
Subject: [e-gold-list] Gold-backed Digital Currency
Question ???
If the entire world switched to using e-gold today, for all their direct
Claude,
This is an interesting question.
If the entire world switched to using e-gold today, for all their
direct debit financial transactions, is there enough gold currently
available to back it?
Sure. The price would simply have to go up.
Yes, but there is another factor which
Come on guys lets have some clear and logical thinking.
Gold stocks are like any other inventory, something which can be increased
by investment (surplus of production over consumption). The supply curve for
gold is upward sloping, like most supply curves, and thus an increased
demand for gold
On 10 Sep 2001, at 6:13, David Hillary wrote:
Hello David.
Gold stocks are like any other inventory, something which can be
increased by investment (surplus of production over consumption).
Gold, unlike most other products, is not consumed for the larger
part. It is accumulated (saved) in
C. Cormier - Ormetal Inc. wrote:
Thus the gold price would have to rise to roughly $5500 per ounce
($25/1.26 * $275) for each unit of fiat currency to be 100% backed
by gold.
Demand draws supply - if gold got that valuable, sources would be found,
and the supply would reinflate.
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You
