2009-01-12, 05:40 PM
Hazzy Wrote:I keep seeing ads on TV buying gold. If it's at it's highest price in decades... why buy in mass? o_0
the ads you see are a scam just like the bowflex or shamwow or whatever the oxyclean guy is selling for $20 nowadays. they want you to give up your jewelry so they can turn around and resell it for high profits after remaking it. but some investor(s) put a lot of money into the scheme, so the entrepreneur has a lot of money to blow on tv ads.
gold will always go up, its a limited resource like oil, silver, water, uranium, etc. the worlds population is still growing so the supply has to be stretched more thinly every year, especially because society demands we buy gold for our women to wear and electronics markets use it as a very good conductor that doesnt corrode. i dont know enough about gold mines like i know oil, but theyll all play out eventually and theyre the only new source of gold keeping the price from spiraling out of control. just like fossil fuels.
currently, our currency is floating against every other currency. the value of US$1 is a representation of the cost of producing products/services in the US and how much demand there is for the products/services worldwide. i think thats why the yen is getting more valuable against other currencies even though the japanese think theyve been in a recession for the last 20 years... everyone likes the electronics they make.