Re: [Pen-l] Re: Gold money is fiat money too.

[Laurent GUERBY <laurent@xxxxxxxxxx>]

On Sat, 2009-01-31 at 12:15 -0500, Shane Mage wrote:
> 
> "plastic money fees" are not low--they're *negative* if you use a
> "rewards" card and pay in full by the due date (and of course zero if
> you use a debit card).  

I assume you're aware that the vendor pays a fee to the bank for each
plastic money transaction, which of course you, the consumer, are
paying?

> And transaction costs of speculating in gold are anything but low--you
> pay the dealers "ask" price every time ("one click per day") you buy,
> but get the dealer's "sell" price every time you buy. The spread is
> your transaction cost per day, and it aint peanuts. 

Typical bid ask spreads in the gold market are about 0.1%-0.15%, which
is nothing relative to volatility (since you mentionned it :) and
less than typical plastic money fees. 

Laurent


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