if you bought an oz of gold years ago for $300, and sold it recently for $1600, where did that money

Baley · August 4, 2011 8:32AM

Did you in effect get some of the quantitative easing dollars to have for your very own?

coinkat · August 4, 2011 9:13AM

To answer the question, consider the following-

I suspect in depends how many years ago- then adjust for inflation so the difference is being figured in 2011 dollars

Part of the answer is the money came from the difference in valuation and people at the time it was sold were willing to pay the 1600

hammered54 · August 4, 2011 9:35PM

here's one...
the 5 year old was listening to the grown up complaining about losing all this money in their 401k and asked......who found it?

jmski52 · August 4, 2011 10:46PM

if you bought an oz of gold years ago for $300, and sold it recently for $1600, where did that money come from?

Come on, Baley - you know how gold got to $1,600. Gold had very little to do with anything. It's only a store of value that people use in an attempt to duck whenever the government pulls another boneheaded spending extravaganza giveaway program out of their a**es.

Some of that *nominal* number came from QE, but a good deal more of it came from some poor working stiff who thinks that he still lives in Baleyville but doesn't know that it was recently annexed by Potterville as his life's savings continue to be eroded by falling home prices and stock market losses.

The gold just sat there and did nothing, except for the increasing future tax liability that derives from a falling dollar that drives up the *nominal* value of gold. The higher gold goes, the larger the percentage that the government will eventually claim on those as of yet unrealized gains.

It truly is a malicious system.

pmcollectour · August 4, 2011 11:07PM

I bought a Bobby Orr sports card years ago for $50. It was an older card, and PSA graded it a PSA 9.
I sold it for $2,000.00

The person who bought it used the money from his profitable computer company.

So American inginuity and innovation paid for my sportscard. Now if Barney Frank bought my sportscard, then QE would have paid for it, or the taxpayer for that matter.

Coins101 · August 4, 2011 11:54PM

Where did the money come from? Why, it came from the ObamaruinyPress. Check for errors. As fast as they are printing them, there has to be errors!

BAJJERFAN · August 5, 2011 1:38AM

I'd reckon from either thin air or the blue sky investment company. Gold was around $300 about 8 years ago or thereabouts. Surely inflation didn't cause the price to triple nor did the ounce get bigger or the purity better. That leaves supply and demand or manipulation as the two likely reasons for the difference. If a person was willing to pay $1600 it doesn't matter where he got the $1600 from [just means he has/had it] but why was he willing to pay $1600 for something that was worth only $300 a few years ago.