Author |
Topic |
|
Insane-O
New Member
1 Posts |
Posted - 01/31/2010 : 04:35:52
|
Hey folks, I'm the new Insane-O!
I thought I would post this link here in the penny forum because I think this current situation we have with pennies costing more than a penny to manufacture is very interesting. I too have been pulling old pennies out of pocket change if for no other reason than to stay sane and support the idea that bad money drives out good money. Why not? It only makes sense. You must be logged in to see this link.
This is an interesting article showing that base metal stockpiles were rapidly built up in late 2008 when prices dropped, and they have continued to build up as prices rise. That is the fundamental disconnect, and it makes me wonder what is going on.
Hope you enjoy reading it. I love this forum you have here. It seems to be a really cool mix of hobby and industry.
|
|
kirkland
New Member
USA
0 Posts |
Posted - 01/31/2010 : 08:26:25
|
Great article indeed! Welcome to RealCent. I've only been around for half a month now, and I am really enjoying it. Happy Hoarding! |
|
|
uthminsta
1000+ Penny Miser Member
USA
1872 Posts |
Posted - 01/31/2010 : 08:33:01
|
Welcome INSANE-O. Glad to have you here. You got it right... this place is REALLY COOL. |
Come to the new and improved realcent: http://realcent.org
|
|
|
PreservingThePast
1000+ Penny Miser Member
USA
1572 Posts |
Posted - 01/31/2010 : 09:40:20
|
Welcome to the forum.
Are you located in the US?
Enjoy your coin searches, everyone. |
|
|
thogey
1000+ Penny Miser Member
USA
1617 Posts |
Posted - 01/31/2010 : 11:41:32
|
Insane-O,
Thanks for the post, welcome.
Quote from the article
"Yet another factor to consider is that base metals are still priced in US dollars. Today’s nominal prices aren’t actually as high as they seem if the true value of today’s dollar is taken into account. With the money supply continuing to grow at a staggering pace, adjusting for inflation would show a much lower real value for these metals. And if I was running a country that was stuck with a lot of US dollars, I’d certainly diversify some of them into say copper or aluminum rather than keep everything in a currency that is in the midst of a secular bear. Perhaps foreign investment, diversification, and dollar hedging will play a bigger role on the consumption front from here."
I think most here people are betting the come, that is the dollar will fall and a hoard of PM's and Base Metals(I almost used BM's an addreviation but it looked funny)will dampen the pain. |
Come to the new and improved realcent: http://realcent.org
|
|
|
|
Topic |
|