by Gary Christenson, Deviant Investor:
The prices of gold, platinum and silver are important and communicate valuable insights. Consider the price of monthly gold for 20 years – log scale below.
Ignore the daily and weekly gyrations, forget the self-serving pronouncements from Goldman, do not trust the paper-pushers at the Fed, and look at the big trends in the price charts.
- Gold in US$ is rising along with debt, currency in circulation, and economic nonsense pretending to be academic wisdom.
- The value and purchasing power of the dollar (euro, yen, pound etc.) is declining as governments and central bankers encourage us to drown in debt.
- The gold trend since 2001 has been up. Expect that trend to continue until central banks admit failure and resign, politicians actually reduce debt, or an extra-terrestrial inhabits the White House, whichever comes first.
Date Gold Price
Aug. 1971 $42.7 when Pres. Nixon did the deed
Aug. 1991 $353
Aug. 2011 $1,829
June 2016 $1,325
Examine the gold to platinum ratio, based on monthly data, and look at the big trends.
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