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

[Laurent GUERBY <laurent@xxxxxxxxxx>]

On Sat, 2009-01-31 at 18:02 -0500, Shane Mage wrote:
> 
> On Jan 31, 2009, at 5:30 PM, Laurent GUERBY 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?
> > 
> > 
> Of course, but *you* are charged the same whether you pay by cash or
> card.
> 
> > > 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, on your "one click a day," amounts over a year to 55% of the
> average transaction amount.

Is this a new version of arithmetic theory I wasn't aware of?

:)

Laurent

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