> > So, if gold is at $380, the average customer will bring in about 1 > > ounce. > > If gold is at $4000, the average customer will bring 0.1 ounce > > If gold goes to $40, then the average customer will come with 10 > > ounces. > > I think you are thinking in terms of dollars. If gold goes to $4,000/ > ounce, bread will cost ~$35.00/loaf. People are still going to buy the > loaf of bread. The bread (gold) has not changed value, the fait has and > people adjust.
No, I am just saying most people (and most customers of TGC) are thinking in dollars (or yen, ..) Not just 'thinking', more importantly they are 'earning' in dollars, yen, ... And the price of bread has not a strong correlation with the price of gold. The price of gold declined by 20% , from $385/oz to $320/oz between February and April this year. Did the price of bread also go down by 20% in the USA? Don' think so. Did people wages decline by 20% over this three month period? Don't think so. Now gold is back up to $385/oz. Did the price of bread rise by 20% since April. Did people's wages go up by 20%? Obviously not. > > Everyone is willing to spend XX percent of their money on gambling > (could be zero). No matter how it is denominated, they will "budget" say > 1% for fun money and spend it. Yes, that's correct. Historically people have spend a certain % of their income on gambling. This % is pretty stable over long period of time. It has been observed that people tend to gamble a little higher % of their income during times of recession. 99.9% of people earn their living in dollars (or yen). 1% of this income buys less gold at $390/oz than it buys at $320/oz So, the average customer will come loose less gold at TGC if the price of gold is higher, because he spends a fixed% of his income which is denominated in $ or Yen,.. That's what I have been trying to point out. Any customer who came to TGC with $1000 worth of e-gold back in April came with 3.125 ounces. The same customer who comes to TGC with $1000 worth of e-gold now, comes with only 2.63 ounces, about 20% less. Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
