Gold Standard: The Long-Run Value

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“Gold-backed money retained its real value for 350 years in the United States and Great Britain. It’s only just clawed back to that level for investors today…”

BY THE TIME the War of the Spanish Succession was finished in 1715, the French King – who admitted that he “loved war too much” – owed the equivalent of £300 million.

Across the Channel, Great Britain owed only £49 million. Which might have looked a little like financial victory. But then, the United Kingdom’s population was only one-third the size of the French. And those debts – priced in “hard money” weights of gold or silver, both in even tighter supply than they are today – were almost 20 times the sum England had defaulted on four decades before.

But hey, that’s inflation for you! Or more properly, that’s inflation as it’s commonly understood – an absolute rise in the price level. In this case, the cost of running the state and murdering Frenchmen.

Whereas in 2009, three centuries later, the UK Treasury will extend its debts by £118 billion this year alone. That’s not only 2,500 times what it owed in 1715 in nominal pounds. It’s also twice the entire national debt that forced the last Labour government to beg an emergency loan from the International Monetary Fund (IMF) thirty-three years ago.

Now that’s real inflation for you! And for everyone else too, unfortunately.

“From the time the United States went off the Gold Standard in 1933 the wholesale price level has gone up by 760%,” noted Professor Roy Jastram, author of The Golden Constant, in December 1981.

“Since England abrogated the Gold Standard in 1931, her price index number has risen by over 2,000%.”

Both in the US and UK, the general price level since Jastram spoke to the Security Analysts Society of San Francisco has more than tripled again. All told, here in London, the British Pound has lost 98% of its purchasing power since that fateful September day when the UK government lost its nerve, and the The World Lost Sterling’s Gold Standard forever.

“Before that, the two countries had a combined history of 350 years of long-run price stability,” Jastram went on. “The price level was the same in the United States in 1930 as it had been in 1800. In England the price index stood at 100.0 in 1717 (the first year of her gold standard) and it was at that figure again in 1930.”

And all thanks to the magic of gold – that “golden constant”. Right?

To be sure, the gold-backed Pound did a phenomenal job of preserving its purchasing power for the 200 years starting when Sir Isaac Newton – he of the Laws of the Motion, but also Master of the Royal Mint in 1717 – established the Pound Sterling as a certain weight of silver.

Newton thus, since the two were interchangeable as cash payment, also set the Pound as a smaller weight of gold (“a pound weight of fine gold is worth fifteen pounds weight six ounces seventeen pennyweight & five grains of fine silver” to be precise) which over time, won out over silver as the arbiter of currency value worldwide.

As our chart shows (hat tip to Statistics.gov.uk for the long-run inflation data), tying money to gold delivered ups and downs in the price level. But overall, costs stayed remarkably steady for the 70 years starting in 1844 – back when the Bank of England was granted monopoly power to issue the currency.

Then the guns of August blew a hole in the Pound’s convertibility. Despite a brief rally after the ill-advised move to restore the old Gold Standard in 1926, Sterling’s long-run value just continued to tumble, as Jastram points out.

As for gold, its purchasing power also suffered during Europe’s second “Thirty Years War” (in Winston Churchill’s phrase), at least when held outside of government hands. Banned from owning it in the United States, private individuals could scarcely trade it for profit in London. Pretty much all of Britain’s bullion had already been nationalized long before (right as the Gold Standard Reached Its Zenith, in fact) and now it was needed to buy arms and munitions from across the water.

Don’t you know there was a war on? Or as Marc Faber put it in his Gloom, Boom & Doom Report last fall (Is there a way to preserve wealth?, Oct. 08), “I can see the gold bugs jumping off their seats and protesting that gold has kept its value (purchasing power) over the course of history. But the problem is that the owners of the gold also changed over time.

“So, when Timur sacked Aleppo and Damascus in A.D. 1400, it didn’t help to have your savings in gold,” the Swiss private-client fund manager adds. “You lost your life and your gold. Women had a better chance of survival and got a one-way ticket to Samarkand.”

Luckily for investors and savers with something less than their lives or liberty to lose 500 years later, the US and UK governments liberalized gold ownership just in time for Gold Prices to shoot higher on a tide of government-wrought inflation in the 1970s. (It’s also worth noting that, in line with how gold owners could survive the four-decade US ban starting at the depths of the Great Depression – and actually benefit from the revaluation of gold that accompanied it – Marc Faber advises holding physical gold overseas, free from the political and/or social risks of your own domestic jurisdiction.)

Finally cut free from artificial government values by Richard Nixon in 1971, gold broke back above its old Gold Standard par in terms of UK purchasing power in 1973. It then spent almost 16 years – after accounting for inflation and changes in gold prices – worth more than it had been throughout the late 19th century, the high-water mark of gold’s international power as the only true, single, irrefutable currency.

And amid the current bull market in gold, its real value for UK investors only just broke back above that level again, just as 2008 turned into 2009. For US investors, gold recovered its 1900 value at the start of 2007.

That’s the nature of a mean-reverting asset, of course. It reverts, if given time (and free ownership, priced in a free market) to its long-run average value. But that does also mean that the average itself will have to revert as well.

Because the starting point of any particular data series – not least if pegged by mankind, even the genius brain of Sir Isaac Newton way back in 1717 – might not necessarily be “correct” for the long run that follows. We can’t judge the “true” value of gold simply from its historical start.

Adrian Ash

for The Daily Reckoning Australia

Adrian Ash
City correspondent for The Daily Reckoning in London and formerly head of editorial at Fleet Street Publications Ltd, Adrian Ash has been studying and writing about the investment markets for the last 9 years. He is now head of research at BullionVault - giving you direct access to investment gold, vaulted in Zurich, on US$3 spreads and 0.8% dealing fees.
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49 Comments on "Gold Standard: The Long-Run Value"

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Pete
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“Because the starting point of any particular data series – not least if pegged by mankind, even the genius brain of Sir Isaac Newton way back in 1717 – might not necessarily be “correct” for the long run that follows. We can’t judge the “true” value of gold simply from its historical start.” Ah, so houses might currently be at their longterm mean value too? ;) Personally I would expect that the mean value of gold (relative to inflation) would increase slightly based on how much investment gold there is in the world vs. the population of the world that… Read more »
Matthew Burns
Guest
Gold and silver in the 1700’s and 1800’s were used as currency when traveling between countries. In today’s world of paper currency your relevant comparison of 1B in population in the early 1800’s compared to today’s 7B seems to indicate golds value at $700 to $800. It does not take into account the active use of gold and silver as a currency in the 1700’s and 1800’s and the non use as an active currency now. I would suggest there is a difference today and should it become and active currency because of the failure of paper, it’s value should… Read more »
Greg Atkinson
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I think after pro-gold article number 157 we have got the message from DR. Now can we please get a little more diversity? It seems of late every second article is basically a buy gold infomercial. How about someone from DR outlines the bear case for gold? Remember there are market forces that work to keep gold prices subdued. If gold prices head higher then the following factors can come into play: 1. More gold mining operations become profitable and thus supply can, in theory, be increased. 2. It becomes more viable to recover/recycle gold. There are vast amounts of… Read more »
Matt Burns
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Spoken like a man who only thinks in short term trends. When I wrote on May 3rd oil was at $40 a barrel, where is it now? Look at the long trends, not just the short ones. We are headed into a very inflationary spiral. We have produced 300% more paper globally than the total GDP’s. I understand under post Keynesian philosophy that there is no limitation to the issuance of a government chit that being currency, however, there is a predicate value resulting from that and there is an inflationary cost then to a currency replacement. That being gold… Read more »
Lachlan
Guest
Greg we could also mention Comex shorts as a negative for gold which are punishing gold as we speak (last few days). However Comex might blow up this month if they get caught way short(June delivery). Goodness me, how high will gold go then? This month is a great chance for gold to blast into orbit as the bulls and bears battle through June. Its worthy of note that India imported zero gold in Jan,Feb,March but started to buy again in April. I hear their economy is on the up since a change in government. The best in jewelery demand… Read more »
Greg Atkinson
Guest
Lachlan I actually expected the combination of Swine Flu and that crazy guy in North Korea to send gold well over US$1000 but it hasn’t so it is quite possible that gold has seen it’s peak of this crisis. This does not mean gold is not something to own but at current prices I think there are simply better things to put money into: oil and gas spring to mind. Yes jewellery demand will pick up again but if the stock markets stabilises then demand for investment gold will slip back from the current record highs I would imagine….or is… Read more »
Coffee Addict
Guest
Hi Greg. There will be a massive global business cost associated with Swine Flu overreaction and confusion. My view is that it should be business as usual in most work places along with some plans to keep the doors open if 30% of staff are off sick (for a week) at the same time. Mind you I wouldn’t want the guys I once saw setting fuses at the Peak Gold Mine in Cobar to be coughing and sneezing while doing their work. Yeah, I understand that Kim Jong Il has had a significant stroke and signed off on the nuclear… Read more »
Greg Atkinson
Guest
CA I hear you about the Swine Flu. They were closing schools and getting quite worked up here in Japan over this but have since backed down and worked out that it is no worse than the seasonal flu. It did however impact business especially in Osaka and I guess the companies that make the face masks did well! But it just shows how quickly a virus can spread around the world these days. I tend to be more worried about the outbreak of disease than global warming. As for North Korea…I ranted on about this a few weeks back.… Read more »
Coffee Addict
Guest
Greg. The (mild) flu mania and stupidity continues. The NSW Government is even excluding from school, those kids who travelled to the State of Origin game in Melbourne. Such action is known to be useless. The key difference with seasonable flu is that it has double the transmissibility. That means that everyone who could get it will get it regardless of how many time they wash their hands or what colour mask they choose. Yeah those cheap surgical masks don’t stop you from catching it but they may somewhat limit your ability to spread it. I’ve currently got my forth… Read more »
Lachlan
Guest
Gidday Greg Thanks for your reply. OK Im keen on gold. Ive had a ten year love affair with it first as amateur prospector and now as an investor. But oil and gas too seems like another inflation play (as the USD weakens) and Ive had a tinker with these too of late. Its such a very exciting time to be alive despite the crisis. In fact the crisis is making people think and keeping us all on our toes. Just look at the enthusiasm on this forum. For the time being, here, we’re still the lucky country. I regard… Read more »
Ned S
Guest
Did anyone ever track that info back to source where The Mogambo Guru reckoned that “Mr. Ash notes that Stephen Harmston … wrote that” blah-blah, blah-blah-blah (heresay?) that ” … across 2,500 years, gold has retained its purchasing power, relative to bread at least” which is seemingly proved when one considers that “It is said – SOME MORE HERESAY! BUT FROM WHOM??? NED S REMAINS IN HIS USUAL STATE OF CONFUSION? SMILE – that an ounce of gold bought 350 loaves of bread in the time of Nebuchadnezzar, king of Babylon, who died in 562 BC” (With the implication being… Read more »
Greg Atkinson
Guest

Lachlan I reckon gold as a long term play is not a bad thing to get into. As for gas I saw Marc Faber a while back saying he reckoned natural gas was undervalued and so that got me looking into it a little more.

The last few weeks have been much more interesting than the previous few months, always nice to have a least a few stocks heading up :)

Greg Atkinson
Guest

Ned S – that rant about gold and bread prices is pure fiction. Just another one of those crazy statements that gets tossed around, a bit like waiting for the water going down the drain to change directions when you cross the equator :)

Ned S
Guest
One more – Those graphs say the purchasing power of gold crashed in WWI – Compared to the paper currency it backed????? And remained flat (and real low!) throughout the Roaring 20’s. And WWII wasn’t at all kind to its purchasing power either. (It isn’t Ned S saying this – The graphs are – Look at them! Or tell me I can’t read a graph by all means please?) And things just basically got worse for gold’s purchasing power up until Nixon cut the peg in 1971 – Or at least that is what the graphs are saying. (I’m not… Read more »
Lachlan
Guest

Jim Rogers is saying the Dow is going to 30,000 to 40,000. A lot of people are starting to agree with him. He has no shorts in place on anything. Maybe the megamonster bubble is coming!
He’s big on gas too.

Lachlan
Guest

A gas bubble?

Ned S
Guest
Greg – Gold, Bread and Price comparisons seperated by 2,500 years do sound a bit suspicious. One would have to suspect that King Neb’s definition of a loaf might have been a bit different to ours – Wonder if his taste ran to light and fluffy white or if he was more your flat black lump type of bloke? And that the production costs of a loaf just could have been a bit different – The slave’s annual leave plus holiday loading, baby bonus and superannuation conditions might have been a bit different to ours? As might the OH&S standards,… Read more »
Greg Atkinson
Guest

Ned S – Just three trades, wow where do I sigh up? lol. It is a bit like all those people who knew the stock market was going to crash. Of course they did not back up their infinite wisdom with plenty of hard cash otherwise they would have shot into the BRW rich list :) Actually the list of the world’s richest people only has a few investors types on it..so this should tell us all something.

Biker Pete
Guest
Interesting posts, Greg and Ned. Some points drawn at random: The Top Five richest in Oz have two-out-of-five in Property; in WA one-out-of-five in Property. As you’d expect, miners predominate. Greg, if you go back a year in these forums, you’ll find folk like our own Coffee Addict called the Crash correctly… and made exactly the right moves. So did I. Now it would be nice to believe that those of us who acted did so as a result of higher intelligence, remarkable insight, etc.,; but the fact is that what Bonner was saying (combined with other sources) led us… Read more »
Dan
Guest

It would be nice to get DR’s (or readers’) take on the history of the gold industry in the 20th and 21st centuries, such as who runs it, who owns the mines around the world, and so forth. Is it anything like the diamond industry?

Biker Pete
Guest
Ned, I’m intrigued that gold stayed flat during two world wars. I guess employment rose(!); munitions thrived; and the citizenry united in purpose. The movement of precious metals away from war zones may have been a major priority! Bill’s recent description of the US scene “The Grandest of Larcenies” in the latest US DR, leads me to believe that the collapsing USD must create immense fear in Europe and Asia. It’s possible most Americans may still be unaware of their buck’s imminent collapse. Long ago we jettisoned our American Express cards. They were unacceptable in over half the countries in… Read more »
Greg Atkinson
Guest
Biker Pete – glad you done well. But if DR or anyone else truly believed they were spotting the crash correctly then they would have used the cash from sold stocks to short everything. Moving simply into cash before the market fell might have been a good move, but it was a cautious one. To play the crash correctly we would have had to sell out of stocks at the top, short the right stocks, grab more cash and then be taking positions at the bottom of the market. (and possibly now selling into the rally) I have not seen… Read more »
Dan
Guest
You’re right Greg… again! People who sold yesterday on the stock market’s relative high would be smiling, albeit wiping a sweaty brow. Finding the correct balance of pessimism and optimism is an art like no other, but it is tempered by information/intelligence, and completely blown out of the water by foreknowledge, however it is come by (Hi Mr. Soros, if you’re reading this). Stocks are up in Australia, true, but it can still be a sucker’s rally if you fail to pick the next crash. My cynical side (which is dominating lately) suggests that, as at a dodgy casino, the… Read more »
Biker Pete
Guest
You’re not wrong, Greg. My investment courage is tempered by my wife’s firm grasp of my leash. One of her mother’s admonitions was that she _not_ marry a broker, BTW. (Her mother was a Rand.) Yes, if one had picked the right stocks during the blow-up, then Ned’s three quick trades might have put one well into the seven-figure club. To answer your question: Many bears remain in property when stocks are rising. Unlike a lot of property bulls,our positive gearing, offsets, super and cash will allow us to _expand_ if property did ever crash. You’ve asked if “…it is… Read more »
Greg Atkinson
Guest
Dan, Pete. I think we are all on the same wavelength. I am so bad at timing the market that I just do not bother to try…I simply sell a bit when things are going well and buy a bit when it looks like the sky if falling. I often sell below the highs and buy above the lows …such is life :) The only damage the market caused me this time around was to punish me for buying shares in 2007 because I thought the sub-prime crisis would not be this bad. Oh..and I got smacked down for buying… Read more »
Ned S
Guest
Greg – Stocks aren’t my thing at all (yet) as you know. But the only book I’ve ever read on it basically reckoned that if a person can learn to spot a bear market and bail until it turns, that is way good enough. The author seemed to be of the opinion that shorting is really a rather different game altogether and not something they’d recommend for anyone but the most skilled of players perhaps? The nasty governments banning shorting of those stocks people probably most wanted to short just reinforced the point to me that the game can obviously… Read more »
Biker Pete
Guest
Don’t feel too bad about B & B, Greg. Marcus Padley was amping it at its high…! Neither T Boone nor Buffett really withstood the winds of change too well, either. Ned, I’ve experienced the trauma of backing a rapidly-expanding company which went bankrupt about five years ago. Thought I’d done due diligence, knew and used their products, knew their holdings intimately… but knew little about their board; or their board’s true intentions. The company went down, then quickly morphed into another company, which transformed into a third…! Difficult to prove intent, I was advised… . Fortunately we made a… Read more »
Lachlan
Guest
The suckers rally does seem to be forgotten about Greg. I thought I would have sold up by now. There is just so much talk of inflation now and a currency crisis (USD or other major)seems to be eminent. Im still not sure whether stocks are a good place to be even with the inflation scenario. Maybe day traders will do well providing they are managing risk. Despite inflation Im not sure what might happen to stocks in a currency crisis (in particular the USD or other majors) because so many dangers lay hidden….I wouldn’t know where to start but… Read more »
Ned S
Guest
Dan – The best argument for US “green shoots” coming I’ve seen is actually that recent DR article on the Subprimes having reset and the other ARMs that are coming up for reset. As the author says “Once the carnage begins, will it be as bad as the subprime crisis? That’s the $64K question.” The good news either way would seem to be that by the end of 2011 latest, that mess should be over with one way or the other. How much other and collateral damage has been done and will be done is another question. But even some… Read more »
Dan
Guest
Ned, they are interesting thoughts. 2011 will be about the time the Australian deposit guarantee ends, the mortgage support schemes end, and, I guess, the US currency will have adjusted to closer to its true value, whatever that may be (or it may not even exist any more). It’s also safely into the time where China is predicted to have completed its submarine fleet (mutually assured destruction). Perhaps the Aussie Government is thinking the same as you say, in that it is not making assurances beyond around that time. I also agree with you that by 2011 we will be… Read more »
Lachlan
Guest

Maybe Ned the carnage to be made worse by rising interest rates on US mortgages?

Lachlan
Guest

“That said, I still don’t think, though, that we’ve reached the bottom of the economic crisis”
I’m with you Dan. I reckon if this inflation thing goes off and the bubble is reflated it’s actually just going to be a lot worse than it needed to be. I think the near term catastrophe will be US dollar dumping on a grand scale. Who needs TV. Real life is entertainment enough.

Ned S
Guest
Lachlan – I’d guess the Fed is real keen to keep interest rates low for lots of reasons. With the rates those ARMs reset at, being one of them. It will be interesting to see how/if they can achieve it given their walk down QE lane. Being a Pollyanna doesn’t come easily to me, but again, quite intentionally going out of my way to look for a positive, I guess we can at least say they are well and truly awake now after after a long and dozy decade. And while they may not be yelling it to the public,… Read more »
Biker Pete
Guest

Maybe the years 2012 and 2039 will be more significant than 2011. 2012 for the BBs… and 2039 for Gen X. Hope to be here for 2012… odds against 2039… . Theoretically, Genexxers will nearly ALL be SFRs… (But who knows?)

Pete
Guest

Matt Burns: Good points. It is interesting how a rally changes people’s opinions so quickly. Just like wild mood swings, happy, sad, happy, sad. Can’t we just be rational and look at the logic? I wonder if some gold bears will be reading these articles in a few years and wonder what they were thinking.

Lachlan
Guest
Dan in regard to diamonds/gold. I know little about diamonds but am assuming the following *the supply and demand fundamentals of diamonds differ from gold because there is much greater supply relative to gold and the respective markets for both *there is some type of market monopoly? Therefore if you produce them you’ll encouter difficulties at the marketing end. What I do know about gold is that anybody can mine it and sell it. Thousands of small claims in Australia are testimony to that. I have friends who spent most of their time in the eighties detecting gold in WA… Read more »
Lachlan
Guest

There is a lot of debate in US concerning the purchase of PMs by ordinary citizens concerned about hyperinflation. A main concern is, who would except it as a medium of exchange. However in Germany some weeks ago a company announced plans to install 500 machines which will distribute 1/20 oz gold coins. They even put a prototype in a shopping mall. In the US a story came out about a car dealership who will trade cars for gold and silver. Things do change as history confirms but just never fast enough for the nervous human disposition.

Ned S
Guest

Biker – I still can’t get my head around those graphs. In the search for a bit of clarity, I did dig up a related 11 Feb 2009 article by the same author. (Have tried four times now to send this comment with a link to the article in and it always ceases to exist – Strange?)

Nevermind; google “Long Run Value Gold Part II” if interested.

I thought it was worth the read.

dan
Guest
Lachlan, that’s very interesting re: gold miners/prospectors. As for issuing real gold money, it seems to me that such a practice would make money less secure than paper cash, as coins are more easily forged than paper money. I’m not aware of a method that guarantees the gold content of a lump of metal which doesn’t involve harming the object in some way (melting down, etc). There might be a solution to this problem, such as using x-ray radiation or portable MRI or something, but it’s yet to be invented as far as I know. For this reason I don’t… Read more »
Biker Pete
Guest
Well worth the read, Ned. Thanks. I remember during my childhood and late teens, that private ownership of gold was banned in WA, possibly so that possession alone might be grounds for conviction of any miner who had been able to ferret away a nugget or three. I remember too reading about some fairly major goldfields heists in very remote, less-policed desert locations. Not sure if the rest of Australia had this prohibition(?) The US prohibited/severely limited private ownership of gold for forty years last century. Which other countries prohibited ownership, I wonder? Certainly the flat periods on the graph… Read more »
Biker Pete
Guest

Prohibition of gold mining in WA has also occurred in WA during settlement. James Mitchell, state premier, prohibited British group settlers from mining, even after they had located gold in the state’s south west, for fear they’d abandon agricultural pursuits in favour of the precious metal. Whether that was the real reason, or whether a new field might have weakened the ‘possession criteria’ I’m not sure!

Lachlan
Guest
Biker Pete its amazing then what a contentious substance gold has been even not that long ago in our own history…and yet now, few people except some of our oldtimers have any experience with gold. I dont think the east here has seen prohibition, just the Eureka incident which was something to do with tax or other mining regulations ..not sure. Dan I cant see gold currency (hard currency) becoming a world wide reality but I can understand this German companies idea may work due to the past history there ie hyperinflation. People there already know the drill so to… Read more »
Lachlan
Guest

Sorry dan i missed your point about diluting the value of gold backed fiat. Can they do that?….then again apparently naked shorting is looking more like a proven case all the time not to mention naked ETF’s why not naked issuing of fiat. Hmmmm why am I feeling cold all of a sudden (insert smiley face).

dan
Guest

Lachlan, you implied it yourself – why would central banks want to shy away from the control they exercised through fiat money? The answer is that people have lost faith in it. Instead the money issuers will stand, hand on heart, swearing by the gold standard, hoping that everyone will believe them, one last time. But fool me once, shame on you, fool me twice, shame on me, right?

rick e
Guest
Yes, Greg I think we all should be bears and bulls why be one or the other that is emotional like betting on your favorite team to always win Maybe we should all be Bullish bear (yes I think this bear market will last for years) at the same time Bearish bull (yes I think it is starting to turn into a bull market) The end of the day is to make money egos aside Bear market rally for me is as Bill said when the alt-a expire which will be 2010, 2011 Or when all countries stop trusting each… Read more »
Biker Pete
Guest
Lachlan: Yes, gold’s persistence is impressive, but its attributes have been universally accepted thru’ time. Interestingly, when my grandfather and my great uncles trekked the Holland Track from Coolgardie at the turn of the century, with horsedrawn drays, taking up five large acreages to the west along the way, one of the six properties they bought (from Alexander Forrest, Twiggy’s great, great uncle) was Golden Valley. A little stream still crosses its northern boundary… and near the stream, my great uncle picked up a nugget the size of his thumb. To this day, the family argues whether this nugget was… Read more »
Greg Atkinson
Guest
Rick e…hard to say where will be in 2010-2011. The thing about the global economy is that it is not that efficient in terms of getting stuff to where it is needed. I mean we have no shortage of food actually, yet people starve. You often hear people say that there will be a food crisis in the years ahead but what this really means is that there will be a food distribution crisis. In many developed countries people are getting ill from being fat when in other countries people cannot get enough food to eat and die…doesn’t this sort… Read more »
Lachlan
Guest
Gidday Biker Pete A metal detecting trip to WA will possibly become a reality for me over the next couple years. Lucky you to live where you do. Another friend of mine returned from WA recently with a beautiful 4 1/2oz nugget.Crumbs, for me, even if it doesnt work out theres its a plenty good reason to travel the continent (something Ive done little of). I see gold prospecting kinda like the stock market. Lots of downside risk so better to choose a course of action with high upside ie prospecting fields with a history of large nuggets OR in… Read more »
Biker Pete
Guest
Thanks, Lachlan. I have two close friends whose passion is prospecting. They do fairly well. One, a plumber, did so well while digging trenches, etc., he now prospects more than he plumbs. The other is a chalkie who retired early. What is interesting on my patch is that I can actually see where someone has already been looking for colour near the cutting on the road which passes our property. Don’t know how they went… . The cutting is already shedding promising material… rose quartz everywhere. The hillside on the northwest side is substantial… and I need an earthmover to… Read more »
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