Friday, 30 March 2018

Not Worth a Continental Redux?...................from Rico

It's not that the value/price of Gold (and Silver) have increased, but that the value/purchasing power of the Dollar to buy the same exact amount of physical precious metals has decreased.
- Since 1971 the $ has lost 97% of its value vs. Gold.
- Since 1999 the $ has lost 60% of its value vs. Gold.
- Since 1999 the DOW has lost 60% of its value vs. Gold.
Now look at the chart of Gold Demand for India-Turkey-Russia-China from 1995 to 2017.
- Since 2004 their aggregate Gold Demand is UP 7-fold.
Why do you think that might be? Are they stupid or something else?
- Now think about the expression "not worth a Continental" and what caused it.....

1 comment:

iOpener said...

I like your blog mostly, but your ideas on the value of the USD are just plain nuts.

It's a medium of exchange, useful for that, but a government one, and hence inherently dishonest. It is absolutely not a storehouse of value, can not be, should not be and never will be.

It is ephemeral, intentionally and properly. If you have a dollar, spend the fucking thing. Buy a hot dog, a beer, a piece of land, an equity in a going concern or a lump of gold.

Do not expect me to respect you if you hang on to a piece of paper, a promissory note from a government. It only means you have fundamentally misunderstood everything.

Savers who save dollars are idiots. Savers who save dollars and promptly buy useful things with those useless dollars are quite clever.