The determination of Price and Golden Price in economics.

 What determine the price of goods such as shares, gold, crypto, property, arts, and food and what is the golden price? 

Price can be affected by:

1. Intrinsic factor, Pi

2. Rarity due to aging, Pa

3. Seasonal, Ps

4. Random, Pr.

5. Discount, Pd. 

6.Confident index, Pc

Seller Price = Pi + Pa +Ps +Pr + Pc - Pd. 

The price of a stock depends on the intrinsic value of a stock, seasonal depending on the trend, random event such as war or act of god, confidence in the economy and the discount the seller willing to give. However stock is not affected by year of aging unless it is a derivative or no more of a going concern. 

Gold on the other hand is depending on intrinsic factor, seasonal trend, random event such as war or act of god, confidence in the economy and discount based on fluidity.  Ages does not much affected the price of gold as gold is a generic product in nature. Unless it is a limited item that will increase over time. 

While, crypto depend on the intrinsic factor or application, seasonal trend, random event such as war or act of god, confident index and discount based on number in circulation or rarity. As crypto is generic in nature, as one type of crypto is the same as the other, due to adherence digital in nature and hence not affected by aging.

Next, property depend on intrinsic value which is location, seasonal trend, random event such as war or act of god, confident in the economy and discounted based on the availability of credit or motivated seller. Property will rise with time as properties are scarcity in nature. 

On the other hand, arts have intrinsic value depending on artist or creator as well as rarity, aging due to years, seasonal trend, random event such as awareness on the art or confident in the economy such as act of god as well as availability of credit and discounted based on motivated seller.

Food will have intrinsic value as it is a necessity to live on, seasonal trend such as festivals, random events such as war or act of god, confident in the economy as well as availability of credit as well as discounted to due to perishability over time.

Cars will have intrinsic value as transport and branding, random event such as war or act of god, confident in the economy and availability of credit and discounted based on condition and ageing parts over time. 

Golden price refer to a ceiling price, whereby, buyer is not willing to pay for the product at a higher ceiling price depending on affordability and availablity of credit. As a things is worth how much a buyer willing to pay. 

Stock can be hundred, Gold can be ten thousand, Crypto can be hundred thousand, arts can be millions, property can be ten of millions. Cars can be hundreds of thousands and food can be hundred.

Bless day ahead. 

Regards, 

Dr. Lion. 

Financial Preservation: Preservation of our Future in the Hand of God

Where is the best place to preserve our future? It is definitely at the Hand of God. 

Since time immemorial, there is nothing new under the sun.

God creat heaven and earth, 

In other words God creat space and matter, 

What is matter?

If you see matter at the periodic table, it consists of multiple elements.

The most stable elements is Gold, Silver and Platinium. 

Aluminium and Copper are the next versatile elements.

Gold were created from supernova explosion of sun like planet. So, gold is the most stable element.

Platinium is known as white gold. 

Silver is the second most stable elements with many industrial applications.

After silver, copper is one of the most industrial applicable metal for electricity conductance. 

Everything in this world, will be transform from one element to the next.

But, since time immemorial the gold, silver and bronze created since the time of Adam still exist in their elemental form after purification. 

What the chinese, the babylonian and the eqyptians use till today still exist. 

The most unstable element is papernotes currency as it will be transferable from one owner to another and if we try to burn or melt it like other metals, it will just be soot.

Even, if you keep it in a pristine condition, it will be worthless after a hundred years or two lifetime of 50 years each.

Have you ever see any currency that survive a hundred years or a millenium?

No, because currency is basically only an iou debt.

Sooner or later all the currency will disappear in thin air. 

However, Gold, silver and copper will exist far longer than our lifetime. They will exist till the days of tribulations. 

Just remember, Adam Smith coin the theory that "A thing is worth, how much a buyer, willing to pay"

If you see a long term chart of Gold, silver and copper versus any currency for a hundred years you will see that for the long term they were on the upward trajectory.

Why?

This is because Gold, silver and copper were created by God with limited supply and currency were created by man with infinity supply.

So, which one will you choose an asset class created by God or asset class created by the human devil such as papernotes.

Always remember in whatever economic condition it is better to be 20 years early than 1 day late. 

Moral of the story: In the begining, God created both heaven and earth or in scientific terms space and matter. Matter such as metal that was created by God will last forever whilst the work of man will decay and perish.

Be Bless, 

Dr. Lion. 

US remedies for current economic problems is worse than it's cause.

 Our current economic problem is due to massive US dollar printing or quantitative easing leading to cost push inflation.

There are 2 types of inflation which is demand pull inflation and cost push inflation.

Both need different remedies.

Demand pull inflation is because there are too many money chasing too little goods.

While, cost push inflation is due to rising goods price.

Currently, it is due to cost push inflation and not the masses becoming richer which is aka demand pull inflation. 

The real solution is by bringing down food price by subsidising, more food planting or acqriculture activity and more international trade as well as world peace. 

But, the US and worldwide is increasing interest rates which is a remedy for cost push inflation.

Do you think making the masses poorer will solve the issue of higher food price? No matter how poor you are, you need to eat. 

The US is making the masses pay for their mistake of QE which leads to cost push inflation and increase interest rates which will then leads to the masses become poorer and leads to recession sooner or later. 

Remember, how poor we are, we need food, water and electricity.

The US remedy is worse than the cause. We will be in massive inflation and recession soon aka stagflation.

So, our world economy is in limbo.

Now cash is king. 

The solution now is to buy dollar for penny, which will make us richer sooner or later as we have a big buffer or margin of safety no matter what asset class we are in be it stock, crypto, houses or collectibles or what phase of economy we are in. 

As always be bless, 

Dr. Lion.