What is money?

Out of context: Reply #65

  • Started
  • Last post
  • 86 Responses
  • maikel0

    Deathboy, buying and shorting is like going short and long. So you are square. If you time it right, you can make a profit.

    However, let's play the game proposed for a second.

    You have let's say gold. Dollar goes to shit, and with it so will do a few other currencies. If the only thing you have is your gold, you will be force to sell to buy -let's say- food.

    You will have to buy some $ (or any currency you like) to get the a -let's say- chicken. The chicken is a commodity (but unlike wheat, soybeans and cocoa it does not trade in any exchange) and as such it will not deprecate based on a currency. so you will spend the same amount of 'gold' to buy the same amount of 'chicken' - while in the process you will give plenty of middlemen a commission for converting gold-into-dollar-into-chicken.

    Also, when you go through a devaluation the commodities in demand will raise more than the other. In the middle of an economy breakdown a lot more people will be interested in food than in gold, so 'chicken' will have an inflated value in comparison to gold.

    result... the whole theory is craaaaaap!

    • i must to be very fucking bored today to reply to this shit.maikel
    • Don't reply... Go and make a lol cubeCableStudios
    • will actually do. but while on it, can you prove me wrong?maikel
    • so what your saying is I must invest in gold chickens asap
      ********
    • See the fucking video (post 1).CableStudios
    • no youre right. why i said by and sell, much like oil speculation. the other stuff is for big collapse which wont happen.
      ********
    • happen but now im bored and dont know why im here
      ********

View thread