DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - What would the effect on the economy be if gold became abundant?

**Scfdglkn** · 06-17-2008, 12:54 AM

Originally posted by Straybow
Most of the transactions on commodities (including "money" as a commodity in Forex) are little more than bets on which way and how far the market moves. Each transaction has a counterpart who essentially bets against you. Either you win money, which comes from the counterpart's portfolio, or you lose money which goes to the counterpart (less the "spread" which goes to the brokerage). Of course, sometimes the brokerage itself acts as counter. Sure, but someone still owns all the gold in the world. And who's betting that gold will be $5 and ounce?

06-17-2008, 12:54 AM	#19
Scfdglkn Join Date Oct 2005 Posts 502 Senior Member	Originally posted by Straybow Most of the transactions on commodities (including "money" as a commodity in Forex) are little more than bets on which way and how far the market moves. Each transaction has a counterpart who essentially bets against you. Either you win money, which comes from the counterpart's portfolio, or you lose money which goes to the counterpart (less the "spread" which goes to the brokerage). Of course, sometimes the brokerage itself acts as counter. Sure, but someone still owns all the gold in the world. And who's betting that gold will be $5 and ounce?
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