DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - My Last Forecast on Silver and Gold Prices

**bumxumer** · 06-26-2012, 05:06 PM

I do not price metals in paper money, that is just silly. Instead I price things in metals themselves.

And you do that by pricing the thing in fiat and then converting that into gold or silver.

Would you sell a car that was priced in fiat at $16,000 for two ounces of gold? Heck no. But you would take 11 ounces of gold for it. Why? Because 11 ounces of gold is worth more fiat than $16,000 in fiat.

Nothing wrong with using fiat to price items. It is what we will always do. It is just the way it works. Even if we went to a total barter, we revert to what we paid for things in fiat and then convert that into gold or silver. Fiat is just a reference point.

06-26-2012, 05:06 PM	#22
bumxumer Join Date Nov 2005 Posts 510 Senior Member	I do not price metals in paper money, that is just silly. Instead I price things in metals themselves. And you do that by pricing the thing in fiat and then converting that into gold or silver. Would you sell a car that was priced in fiat at $16,000 for two ounces of gold? Heck no. But you would take 11 ounces of gold for it. Why? Because 11 ounces of gold is worth more fiat than $16,000 in fiat. Nothing wrong with using fiat to price items. It is what we will always do. It is just the way it works. Even if we went to a total barter, we revert to what we paid for things in fiat and then convert that into gold or silver. Fiat is just a reference point.
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