Comments by "" (@freesk8) on "The Real Value of Gold" video.

  1. Bec Beci, Gold WAS in a bubble when it hit $1900, but the bubble burst a while ago.  It is now near the bottom and awaiting a huge re-inflation.  Gold yields per ton of ore are falling.  Most of the high grade deposits are gone.
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  2. John Hughes  You are right, that you can't really use the word "inflate" with regard to the price of gold, but what would function in a similar way would be if there were a lot of new gold discovered.  This would reduce the price of gold.  This happened to the Spaniards when they brought the new world gold back.  My point was that gold production is flat, and will probably be declining in the future since ore yields are getting lower.  So we are unlikely to get a reduction in the price of gold through large new mining production. But, central governments COULD chose to sell a lot of it at once... this would reduce gold prices.  ETF's have had the effect of reducing gold prices by allowing lots of people to think they own some of it.  We know this is a bit of a ponzi scheme, but the effect has been to dramatically increase the supply of "gold" that people can buy...
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  3. John Hughes And the inflation I was talking about was the re-inflation of the gold bubble, which will soon happen.
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