Fact: Over the eons, currencies have shifted from what was probably rocks to gold to silver to gold and finally into paper currency.
Fact: In 1908, Henry Ford sold his model T cars for $850. or 42.5 ounces of gold. Today, the base price of the all-wheel-drive 2010 Ford Taurus SHO with some (but not all) options comes to about $42,500 or ………………………42.5 OUNCES OF GOLD! .
Fact: At the turn of the century the primary fuel burned was……..whale blubber. That’s right. Whale blubber a/k/a petroleum jelly like the kind you used to put on an infants bottom to keep water away from their delicate skin. What’s it worth now? Zip. Of course it was finally replaced by crude oil.
The point I’m making in all of this is that everything goes in cycles; nothing is contstant and remains the same…except gold as a tangible asset.
In 100 years will we still be using paper money? Who knows. Maybe we’ll be charging everything on a little plastic card or an eye scan will deduct it from a virtual bank account. Will crude still be our primary heat source? Maybe it’ll be crude, clean coal, corn, nuclear power, natural gas or garbage converters like the car in Back to the Future. How about they invent a little purple pill and we all use telekinentic energy? Now that’s what I’d call clean fuel.
Fact: The amount of available crude that is viable for heating is dropping. Certainly, there is an excess of inaccessible or unusable crude however the cost to reach and convert is extreme. For the US, the amount of available *free market oil* continues to drop. So what would be the cheaper alternative; the fuel of the future?
In 100 years, I’m betting on gold, as a tangible asset, will still buy a car and natural gas as a clean energy alternative. I will not be around to see it, but I’m guessing my great-grandchildren will appreciate their new flying, food burning Taurus with the 42.5 ounces of gold I bought for them in 2009 and that nat gas? I will have bought near the bottom. Pretty smart for an old broad, huh 😉 [HT Gregor MacDonald]