endurox50

I have a dispute resolution scenario that I am trying to solve via a free market solution. I have a sneaking suspicion that the solution far easier than I am expecting. I wish to thank you for your patience while I gather my thoughts below.There are two individuals in this story which takes place in a South American country; one is a wealthy developer, another is a poor farmer.These two individuals were relatively close neighbors (in proximity only) and one day the wealthy land owner decided to build an apartment complex on his part of the land. The pilings were being driven into the ground by machinery which vibrated the ground causing damage to the poor individual's home. The poor individual then brought suit against the wealthy neighbor for damages. The poor individual was getting into a cab to head to court but was shot before he could. The suit was closed and the land was sold off to the wealthy land owner next door.The remaining family members never brought suit (for fears of further retaliation) but the family had clear evidence that the wealthy land owner simply hired a murderer to eliminate the poor neighbor so that the suit would be dropped and the land sold off.I was told this story from one of said family members in response to my "the free market is the answer". Left me walking on egg shells as I didn't want to offend them and the departed out of respect.Just writing this out has already helped me focus on this topic. Yet I still look forward to your thoughts.My initial reaction / response; this poor individual relied on the state to obtain justice.I believe the only thing this individual could have done was to have purchased land in a contractual area preventing such buildings thus helping to prevent this threat of damage from an individual with only money on his mind. However this financially strapped individual had no means with which to a) defend himself, though it was his moral obligation b) couldn't just suck it up and move to a new location.I guess the only answer is that, sometimes the free market solution just sucks. But it's better than the alternative enslavement proposed by a state and federal government.I may have rambled on and possibly confused some of you. I don't even fully understand what question I am attempting to ask. I guess how would a poor individual defend himself in such a scenario above. Granted he probably couldn't foresee the extent his neighbor was willing to go (hire a gun) to get his way irrespective of the fact that he was clearly damaging another's private property in the development of his own.Thank you for your time and consideration. I look forward to our conversation...!

I don't think it's meaningful to ask whether a freely-traded commodity such as gold is over or under valued. It just ... has a value. I will have to respectfully disagree. The price of the shiny and conductive metal (gold) varies and like anything has times when it goes on sale or becomes over valued. A trader can profit from the spread. All assets (homes, tools, commodities, stocks) that come to mind are like this. Nothing on earth is perfectly priced and as you stated it only has value because others say it has value. I have no physical use for a shiny, non-corrosive metal coin that I must bury somewhere, but since it is correlated with the money supply serves as a great hedge. If the link between the money supply and the price of gold is broken (as I believe it is now), assuming it is relinked in the future one can preserve much purchasing power. Its not that you can get rich by holding it, it is just that others get poor thus their purchasing power gets transferred to you. This is not an ad for Jim, but Jim Sinclair was able to call the top of the gold market in the 80's and the bottom shortly after. After a few years, he re-entered once he saw the correlated items (monetary policy and what not) go in favor. With a track record like that he wins my ear. As an anarchist I listen to all, follow none and take full responsibility for my actions good or bad. Peter Schiff also has an excellent track record. This is just my opinion and I thank you for yours. Great mind stimulating discussions on these forums! What fun, its addicting.

I think I see now. So you suggest only correlating it (gold) with the strength of the dollar then? Just to confirm my understanding, how would one determine if an asset was over or under valued if we don't use some form of correlation / measurment?

Thank you for that reminder. I can now recall those threatening comments made by the various main stream media talking heads at the time. I no longer watch them, but their comments stuck with me. Concerning shale oil, I just read a book (not gospel but just an in-depth review) about how increased regulations on these companies is driving up the cost dramatically. And rightly so, I would try to stop someone drilling in my back yard. Sadly these home owners and farmers have no real recourse or means of defense against the millions of dollars the corporations can afford to dish out to their lawyers and lobbyist. Another reason why I follow freedomainradio. I agree with Stefan, restoring property rights is vital to a free world.

I can relate, there are at least 5 different we buy gold shops within a 10 mile radius of my location (based on a google map view). And you are right, as things get tuffer people will continue to exchange their jewelry and fillings to pay bills. Eventually they will run out of such items, then what?

Thank you for the word of caution. I am probably going about this the wrong way as you stated. The reason for my interest in the gas price is because I believe that the US economy would dramatically slow down with gasoline running over $6.00 per gallon. If their is a correlation (though loose) to gold, perhaps we never get to $3,500. Perhaps it collapses before it can get there. Just a thought. The "value" of gold keeps up with the expansion in the money supply as you stated. Meaning those that hold it, usually are able to maintain their purchasing power. Since oil is also currently valued in dollars another loose correlation can be made there as well. But as you stated, one should take great care in this consideration. What are your thoughts on my main subject that the US economy would dramatically slow down with gasoline running over $6.00 per gallon and thus gold may never reach the predicted $3,500 level since it all comes to a grinding halt?

You are correct. If the market as a whole thought the price should be $3,500 it would already be there. Thank you for calling me out on that.

Realizing (just now) that nothing happens in a vacuum, people will begin driving less as the price of gas increases (assuming their wages stay the same) incrasing the need for tele-communitions. So purhaps the increase in the price of gas may begin to lag the increase in the price of gold. Of course both are just an indication of the devaluation of the dollar (the latter, gold, more so than gas). I'm thinking I need to find a chart on this.

Hello Everyone! I recently received a newsletter feed from Jim Sinclair of JSMineset in which he stated that gold will eventually trade at $3,500 per ounce. I have no doubt that it will and his newsletter got me to wondering what the price of certain other things would look like. Specifically gasoline. I see that around August 2011, with gold at its highest around $1,918 per ounce, the average price of regular gas in the US (based on GasBuddy.com charts) was $3.70 per gallon. The current US average price is around $3.25 per gallon with gold at $1,682 per ounce. May I request that one of you fine members check my math on the speculative price on the average price of US gas below when you have a convenient moment? Thank you! 1918 - 1682 = 236 change in gold price 3.70 - 3.25 = 0.45 change in gas price 3500 - 1682 = 1818 expected change in gold 1818 / 236 = 7.70 expected change in gold over change in gold gives us a ratio 7.70 x 0.45 = 3.47 ratio multiplied by change in gas price gives us our increase 3.25 + 3.47= 6.72 current average added to speculated average ... for a grand speculated total of regular gas priced in USD with gold at $3,500 per ounce: $6.72 Of course I also more than welcome your thoughts on this subject! Respectfully, Manuel Rodrigues III