Gold - Commodity or currency?

Gold - a commodity or currency?

  • It's a commodity

    Votes: 21 39.6%

  • It's a currency

    Votes: 25 47.2%

  • other

    Votes: 7 13.2%
  • Total voters
    53
HowardCohodas said:
Gold - a commodity or currency? Both.
Click to expand...

Currency? Why don't you go to your local store and try to pay with gold?

Get real man, get real. Gold is commodity that has been used in the past to back money. Now it is used only for industrial applications and for speculation because its supply is limited.
 
rsidivergence said:
Currency? Why don't you go to your local store and try to pay with gold?

Get real man, get real. Gold is commodity that has been used in the past to back money. Now it is used only for industrial applications and for speculation because its supply is limited.
Click to expand...

Apparently you are unaware of some of the "markets" in which I participate as a preparation for potential disasters and trade in barter and...

you guessed it. Gold.
 
Get real man. Only crackpots theoriests talk about barter trade alternatives.

Join Date
Sep 29, 2010
Total Posts
849

I suggest to you to slow down. An average of 10 posts per day in this fine forum is enough to expose your deficiencies at the end of the day. Silence is a virtue. This is friendly advice.
 
rsidivergence said:
Get real man. Only crackpots theoriests talk about barter trade alternatives.

Join Date
Sep 29, 2010
Total Posts
849

I suggest to you to slow down. An average of 10 posts per day in this fine forum is enough to expose your deficiencies at the end of the day. Silence is a virtue. This is friendly advice.
Click to expand...

Some advice sounds friendly when it is given. Some does not. Yours feels a lot like the latter.

Silence in the face of ignorance or evil is no virtue by my code. You have your right to be ignorant, but you have the opportunity to learn about it here.
 
Dispassionate said:
What says you? I say it's a currency.
Click to expand...


Everything is a commodity.

Every commodity has a price.

You can exchange any commodity for any other commodity once you agree on an exchange rate.


Basic micro-economics...


Addenda: Money is a commodity too and should be perceived as such if you wish to apply economic theory and practice.
 
gold is a commodity and a currency both
Mainly gold is a currency, but the fact that approx 70% of gold usually goes into jewellery cannot be ignored so it goes to commodity.
The gold price has been “ruled” by the massive head and shoulders pattern on the weekly chart (Gold Weekly Chart), so the usual late sept/early oct hard sell off not occurring is most likely a function of the action of two factors: a. The hedge fund momentum buying, trying to milk the technical chart pattern. b. The action of Barrick acting in the comex open market buying futures contracts to cover off their hedge position.
 
Martinghoul said:
Gold is a fiat commodity.
Click to expand...

http://www.cityam.com/markets-and-investments/gold-now-the-world’s-hottest-fiat-commodity

This week, Deutsche Borse Commodities launched a new form of exchange-traded security that is essentially a certificate of ownership for a chunk of allocated gold. In a signal of how much demand they expect, the firm has reserved €1.6bn worth of gold for the purpose.

Does any body smell a Ponzi scheme in the making here???

Let's say ETFs become very popullar and exceed the 1.6bn worth of gold.

Does this imply DB will become a gold buyer too?

Does this mean if DB becomes very profitable other banks will enter the market?

What will happen to the price of gold?

Alternatively, if the ETF holders dispose of their holdings as gold crashes what will happen to the profits of DB or other players.

I reckon as price of gold drops the Chinese will be buying like there is no tomorrow having burnt their fingers on the dollar...

Very Interesting...
 
Dispassionate said:
What says you? I say it's a currency.
Click to expand...

I voted 'Other' because it is both. Many countries mint Gold coins with a face value that are legal tender. Just like copper and nickel coins have a face value and a melt value, it's just that the ratio for gold coins is much higher, although copper is getting close now.
 
rsidivergence said:
Currency? Why don't you go to your local store and try to pay with gold?

Get real man, get real. Gold is commodity that has been used in the past to back money. Now it is used only for industrial applications and for speculation because its supply is limited.
Click to expand...

How about this. I will buy anything you want in the UK worth £100 and deliver it to your door. The fee I charge for my service is only a 1oz Gold Britannia.


And they say gold is in a bubble... :rolleyes:
 
new_trader said:
How about this. I will buy anything you want in the UK worth £100 and deliver it to your door. The fee I charge for my service is only a 1oz Gold Britannia.


And they say gold is in a bubble... :rolleyes:
Click to expand...


I'll vote for that. (y)
 
JP Morgan announced today that from now on they will accept physical gold bullion as collateral. This is a sign of gold’s further remonetisation in the global financial and monetary system. It may signal that JP Morgan is having difficulty in securing gold bullion in volume. JP Morgan is the custodian for many of the gold and silver exchange traded funds. They will not accept ETF trust gold as collateral.

In October, the clearing house of global exchange CME Group – CME Clearing – announced it will now accept gold as collateral for trades on the exchange. Gold bullion can be used for margins for CME trades, ranging from crude oil, gold, grains, equity indexes and Treasury bonds.

Given the current monetary, macroeconomic and geopolitical risk gold is an attractive alternative to debt, equities or other paper assets as collateral.

JP Morgans’s move shows how gold bullion’s fungiblity and tangibility as an asset makes it attractive and shows gold’s increasing importance in the financial system.

Interestingly, the CME is storing their collateral gold at JP Morgan Chase Bank in London. The exchange said it hoped to add additional depositories in the future but there has been no announcement of developments in this regard.
Click to expand...
:!:
 
new_trader said:
JP Morgan announced today that from now on they will accept physical gold bullion as collateral. This is a sign of gold’s further remonetisation in the global financial and monetary system. It may signal that JP Morgan is having difficulty in securing gold bullion in volume. JP Morgan is the custodian for many of the gold and silver exchange traded funds. They will not accept ETF trust gold as collateral.

In October, the clearing house of global exchange CME Group – CME Clearing – announced it will now accept gold as collateral for trades on the exchange. Gold bullion can be used for margins for CME trades, ranging from crude oil, gold, grains, equity indexes and Treasury bonds.

Given the current monetary, macroeconomic and geopolitical risk gold is an attractive alternative to debt, equities or other paper assets as collateral.

JP Morgans’s move shows how gold bullion’s fungiblity and tangibility as an asset makes it attractive and shows gold’s increasing importance in the financial system.

Interestingly, the CME is storing their collateral gold at JP Morgan Chase Bank in London. The exchange said it hoped to add additional depositories in the future but there has been no announcement of developments in this regard.
Click to expand...


Those boys at JPM certainly know their game... (y)

This blog speaks volumes about gold and the current market place.


Good post.
 
is it not an intangible promissory commodity expressed by means of contract in the form of paper notes not unlike bonds?
 
You must log in or register to reply here.

Similar threads

C
Market Profile in gold, oil, currencies
Replies
11
Views
3K
stang3O2
S
J
Commodity/ currency trading books
Replies
1
Views
4K
Gi Books
G
Perrington
Currency behaviour
Replies
1
Views
3K
commanderco
C
M
Pattern Day trading rules in US
Replies
3
Views
3K
Trader333
Trader333
G
Gold rised as dollar weakend against the euro
Replies
0
Views
1K
gnutrade.satya
G
Top