Monday, February 25, 2008

Gold hits the mainstream press

The dollar versus gold? No contest

Gold has retained its value, though with fluctuations, over centuries. Even now its purchasing power is not far distant from 300 years ago. Most paper currencies lost more than 98 per cent of their purchasing power in the 20th century alone. Last week gold reached $950 an ounce because the world is losing confidence in all the currencies issued by central banks, but particularly in the dollar. China and India both have a long tradition of hoarding gold, often in the form of jewellery, as a form of personal saving. The Chinese and Indian central banks already have more dollars in their reserve than they can possibly want. They know that the dollar is likely to depreciate over time. They suspect that the Americans will elect an inflationary president. Gold is a defence against inflation.

Posted by drewster @ 12:50 AM (831 views)
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4 thoughts on “Gold hits the mainstream press

  • There’s another interesting article in the Times today:
    Times: Bear market – This is the latest buying opportunity
    Basically saying “This is a minor blip in the economy, not a repeat of 1929. Proof is that the stockmarket has barely moved.”

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  • sold 2 rent 1 says:

    The dollar price of gold has been moving in a long cycle, up from 1965 to 1981, down from 1981 to 1999, up from 2000 to 2008. I do not expect this cycle to peak at $1,000 an ounce, though the credit crunch may give it pause. Gold is a defence against inflation. In November the Americans will elect another inflationary president.

    There is that 16-18 year cycle again. The one that is present in stocks, commodities and property.
    Both articles are correct. Both are saying massive money creation will propel gold and stocks.

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  • planning4acrash says:

    I just get a bit jittery when the masses start to get interest.

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  • planning4acrash (from the posting about the internet)

    “Society will probably take decades to be fully transformed by it.”

    Au contraire.
    The spoken word revolution played out in 100,000 years
    The written word revolution played out in 5000 years
    The industrial revolution played out in 150+ years
    The internet revolution played out in 15+ years

    There will be another revolution just as big to play out in 1.5+ years within the next 5 years.
    Evolution is exponential. Perpare your mind for change.

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