Gold prices dropping like a rock

[Skybird]

Currently, prices for many ressources suddenly went into a significant fall - which is no sign of relief for the current crisis, but an extremely dangerous signal for an economy in or near to a recession. economists will tell you that it means that the economic trend ("Konjunktur") is about to switch into the red, or may even collapse with a loud bang. German press even had editorials about it in the past two days, with red flashing lights framing the articles.

You do not buy gold for speculation and investement anyway, but to have an emergency reserve for very, very bad times when no printed paper, money and treaty is worth anything anymore. for that, the value of gold expressed in current currency, is pointless. because in that scenario, gold itself becomes the currency.

[peterloo]

I am not an alarmist or a survivalist, so I don't think I need to buy gold myself in case of dollar depreciation

However, the recent trend of oil and gold did remind me that, the huge bunch of speculators do have profound impact on the price of these goods

Originally Posted by skybird

economists will tell you that it means that the economic trend ("Konjunktur") is about to switch into the red, or may even collapse with a loud bang.

The ecomony has already in recession. The Fed just don't want to admit that.

[Platapus]

Originally Posted by Skybird

You do not buy gold for speculation and investement anyway, but to have an emergency reserve for very, very bad times when no printed paper, money and treaty is worth anything anymore. for that, the value of gold expressed in current currency, is pointless. because in that scenario, gold itself becomes the currency.

But in that terrible situation, what will be the value of gold?

If you are hungry but have a bar of gold and I have a loaf of bread. How much will that bar of gold be worth? Exactly one loaf of bread if you are hungry enough.

You can try to tell me "no no, my gold is worth much more." My answer will be "but I have the bread and you are hungry".

Other than for a few industries, gold only has value because people agree on a value. In the doomsday scenario you mentioned why would gold be of any standard value?

If the world's economy collapses and governments fail and all currency is failed, why would you think that gold will have any value except for what someone will trade you for it?

It may take many bars of inedible gold to buy one loaf of bread if you are hungry enough