The following table tracks gold's performance over the past 8 years in terms of 9 different currencies.
Source: GoldMoney
His thesis is that given these exceptional results, gold prima facie may look like a great 'investment'. But in reality, gold is not appreciating, rather currencies are getting debased.
Source: GoldMoney
The price of crude oil in terms of gold, for example, has basically remained unchanged over the 59 year period since 1950. Thus a gram of gold today buys essentially the same amount of crude oil it did in 1950. So, it there has been no appreciation from owning gold in real terms, but it has nevertheless achieved something very important: preserving purchasing power. Which, after all, is what money is supposed to do, but has failed to do so far because of inflation. After all, governments can keep making new money out of paper, but cannot possibly make new gold.
Source: GoldMoney
His thesis is that given these exceptional results, gold prima facie may look like a great 'investment'. But in reality, gold is not appreciating, rather currencies are getting debased.
Source: GoldMoney
The price of crude oil in terms of gold, for example, has basically remained unchanged over the 59 year period since 1950. Thus a gram of gold today buys essentially the same amount of crude oil it did in 1950. So, it there has been no appreciation from owning gold in real terms, but it has nevertheless achieved something very important: preserving purchasing power. Which, after all, is what money is supposed to do, but has failed to do so far because of inflation. After all, governments can keep making new money out of paper, but cannot possibly make new gold.
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