So i have recently been thinking, it isn't that gold has been rising in price it is the dollar has been losing value. So from that perspective when we went off the gold standard in 1971 gold was $30 per ounce now it is $1200! So the dollar has lost that much real value. i am using gold as the baseline and draw a line going downward to represent the dollar value rather than a line going up to represent the gold price going up. Just reverse the chart. From that perspective gold makes alot of sense long term.
I am not sure. I have realized that fiat currency has been lossing value for some time, but never made the mental switch in my head to reverse the dollar vs. gold graph. It is just a clarification and simplification of what i already knew.
your next "ah ha" moment will come when you start to price things in ounces (of gold or silver), not dollars
And I thought I was the only one that converted the price of things into silver or gold ounces What sucks is when you bought something and later thought "I could have bought a couple of ounces with that”.
My Ah ha moment on Gold prices
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Posted - 05/19/2010 : 08:58:00
