Wednesday, November 18, 2009


Gold. It's a precious metal. We know how much is in circulation and we know how much is going to be mined next year. Many of us have a little gold. I, for example, wear a ring of gold on my left hand, ring finger.

The price of gold is dependent upon a number of things like supply and demand. I see that gold today set a new record price, of $1,147.72 per ounce.

Basic economics tells us that the price of gold is very stable and things fluctuate around it. Like the value of the money spent on it. Gold maintains its value very, very well. What doesn't maintain its value so well is the money spent on it.

In short, when gold prices are high, your money is worth less. That's the short answer for monetary policy.


J said...

A 450 gr 45-70 bullet made of gold would be worth about $1,200. A 170 gr 311041 30-30 bullet made of gold would be worth about $425. If the ingots on my front porch were gold, they'd be worth about $1,750,000.

Pawpaw said...

The hell of it is that, like gold, lead is a commodity. It went up today too. Kitco reports that lead is up 0.0023 to $1.0669 per pound.

Copper is up, zinc is up, lead and gold are up.

Gold is a bellwether, but most metals went up today.

Rich Jordan said...

Unfortunate that; ammo and component prices seemed to be slowly coming back down here and there... if the commodity prices keep going up, ammo will follow once again.

Guess I better buy more now ;)