Dow Jones and GOLD!

[Geowizard]

How stuff works;

Is fear important?

https://science.howstuffworks.com/life/ ... /fear3.htm

Fear is about being careful, responsible and reasonable.

- Geowizard

[Jim_Alaska]

II Timothy 1:7 "For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind."

[Geowizard]

Bank failures;

We have seen our first Bank failure. A Bank in West Virginia.

https://www.depositaccounts.com/blog/bank-failures/

Airlines;

Ravn is an Airline that services the interior of Alaska. They have declared Bankruptcy, sent their staff home and parked all of their aircraft.

https://www.adn.com/alaska-news/2020/04 ... z2xzVU8zxc

- Geowizard

[Fleng]

Like Jim said, fear is the biggest driver for not only the stack market but human behavior. Wall Street trades on news and if it is bad they sell and if it is good they buy. Gold price is very complicated because it is driven by so many factors including inflation, international currency, and of course profit taking. But it too is subject to the fear factor.

[Fleng]

I do expect the price of gold to increase if for nothing else than the effect of the stimulus package. But the billions of dollars in newly mined gold every year is going to buoy the rise.

Like women, it is complicated.

[Geowizard]

A History lesson;

There are only FOUR times in history that GOLD was higher than it is today...

Those FOUR times followed the bubble bursting and near economic collapse of 2008.

- Geowizard

[Jim_Alaska]

Yes, I seem to remember $1800 per oz, or very close to it.

[Joe S (AK)]

Something to keep in mind: The value of Gold usually stays about constant. NOT the price of Gold, but rather its Value. The only time that Value and Price come into the picture together is at the instant of a purchase.

Price is simply a reflection of worth in the reflected image of the current strength of money. So, if it takes $1,000 to buy an ounce of Gold today and then the dollar suddenly devalues by half, the price of that same ounce of Gold now will be $2,000. The Gold still has the exact same value but now it just takes twice as many inflated dollars to equal (or trade for) the Gold's value.

Remember when a 12 ounce bottle of Coke cost a nickle? I do. That identical bottle of coke today will cost you $1. The bottle, the cap and the contents are the same - it just takes more money today to trade for that same 5 cent Coke from long ago. The nickle from the '50s just inflated over time to the $1 of today.

Joe

[Geowizard]

Consumer Price Index;

Interesting discussion!

Consumer Price Index CPI in the United States averaged 114.17 points from 1950 until 2020, reaching an all time high of 259.05 points in February of 2020 and a record low of 23.51 points in January of 1950.

Inflation and the cost of goods and services varies from one country to another. It's impossible to tie the cost of ONE specific commodity (Coca-Cola) to the price of GOLD. You can't tie the cost of Dr. Pepper to GOLD either.

The price of GOLD in 1950 was $35.00 per troy ounce. The price of GOLD remained fixed until about 1975. The price/cost/ value of Coca-Cola increased with inflation 1 to 2 percent per year each year for that 25 years.

The price/cost/value of GOLD has gone up by a factor of 50 World-wide since 1950!

Metal commodities vary according to supply and demand. The cost of platinum is an example. Platinum went up in cost/price/value when the demand increased for its use in catalytic converters. Palladium is now worth MORE (costs more and has a higher price) than GOLD. That is because of increased demand from use as a substitute for platinum World-wide.

GOLD prices are tied to demand. GOLD is known as a hedge against declining Stocks. Investors move capital from Stocks to GOLD when Stocks decline. It is not out of "fear". They push the "sell" button to sell stocks and then push the "buy" button to buy GOLD!

- Geowizard

[Joe S (AK)]

Geo,

We all look at life from our own unique perspective and most of us welcome parallel views when ours are a bit weak, incomplete or maybe a bit stand alone. That is how we all grow in our ways of seeing and doing things.

That is exactly why I come here, as well as a number of other Gold Mining forums - to learn about Gold and the various ways it's found, the various items of equipment used and other such things of importance to me. New ideas, techniques modifications, innovations, insights and even new equipment are the life's blood in our specific pursuits here while the 'I'm always right and so that is just how everyone should see things.' stance from the past ways of doing things just doesn't cut it for me, not at all.

In addition, if something of interest comes up as a tangent then yes, lets discuss that for what it lends to our core interests - but just discuss them in passing, while letting the give and take here bring a clearer conclusion as to how 'it' influences our identified reason for being here - knowledge in the mining of Gold.

'Cherry Picking' the internet for a day or more to selectively harvest far flung facts to bolster one sided, wandering and dead ended rhetoric also doesn't cut it for me. That practice, in my personal view, is quite counter-productive to the entire thrust of why we all come here and it just wastes my time.

May I respectively point out that right here and right now it's probably past time to reconsider any position of presumptive superiority (bolstered with snappy facts from scouring the net) and get back to mining for Gold instead.

While I have been very reluctant to be so blatant, blunt and seemingly uncaring in voicing such views in the past, those selfsame points have been the topic of more and more of my private conversations lately, written and verbal, with other folks who visit here. (Or, actually more to the point, many whom used to visit here.)

So to sum it up - posting back to 'on topic' mining strings as well as a grounding in common courtesy will encourage those who come here to join in, instead of getting pushed off to the side, while slowly encouraging new, centered, members to join into the conversation.

Joe