In response to:

Selling Gold First

fredjay Wrote: Feb 16, 2013 1:49 PM
Gold, when we were on the gold standard, was RARELY used in everyday transactions: it was too valuable. If you walked into the corner grocery store with a gold Double Eagle ($20), to buy a pack of cigarettes (ten cents) or a pound of potatoes (a nickel), the grocer could not cash it. Even a gold Quarter Eagle ($2.50) would have strained him. Silver coins (our coins were made of silver in those days) did the trick and were used with $1 silver certificates (paper money convertible to silver at any bank) in almost every daily transaction.
Texas Chris Wrote: Feb 18, 2013 9:25 AM
Yes, exactly.

Gold was a store of mass wealth, and silver was the day-to-day currency.

Gold is the place to be, or so they say. 

Yes, I’ve heard the well-stated arguments and they all come right from Economics 101.  It’s simple, really. 

If the world is awash in liquidity, it will ultimately be inflationary and then hyper-inflationary with too much money chasing too few goods (the traditional but inaccurate definition of inflation.) 

Therefore, fiat currency will lose its purchasing power while precious metals retain their purchasing power, a straightforward argument perhaps? 

The other side of the debate involves a technical analysis perspective. 

In 2011, gold made a parabolic move from...