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

**imporrilk** · 06-19-2008, 08:52 PM

Originally posted by Straybow
Errrm, that was the stock example where a price drop does not generally recover but is a sign of severe trouble. The gold commodity trade is the example that followed.

Besides "would have done" is the gotcha of trading. Like all the poor sobs who bought at $600+ in 1980 and it took 26 years for the price to return to that level in real dollars (it would have to get to $2000+ in 2008 dollars to break even after inflation). Fundamentally there were no difference in your examples, which lead to confusion. When you buy gold you tend to buy it as paper, so I assumed that's what you were talking about.

I then compared to gold as non-investment commodity, which is why it is different to shares.

Regards the recovery issue, yeah, you lose, but that's no different to shares. How much you lose is also different in the example discussed, and the would have is quite simple - he can just do it there and then in the example provided.

06-19-2008, 08:52 PM	#28
imporrilk Join Date Oct 2005 Posts 461 Senior Member	Originally posted by Straybow Errrm, that was the stock example where a price drop does not generally recover but is a sign of severe trouble. The gold commodity trade is the example that followed. Besides "would have done" is the gotcha of trading. Like all the poor sobs who bought at $600+ in 1980 and it took 26 years for the price to return to that level in real dollars (it would have to get to $2000+ in 2008 dollars to break even after inflation). Fundamentally there were no difference in your examples, which lead to confusion. When you buy gold you tend to buy it as paper, so I assumed that's what you were talking about. I then compared to gold as non-investment commodity, which is why it is different to shares. Regards the recovery issue, yeah, you lose, but that's no different to shares. How much you lose is also different in the example discussed, and the would have is quite simple - he can just do it there and then in the example provided.
	Quote