Showing posts from February 26, 2023

Gold Remembers, So That You Can Forget

You will never, ever make money by owning gold because that's not the purpose of owning gold.  In practical terms, you must sell the good currency (gold) to buy the bad currency (US dollar) before it can be used. Gresham's law in reverse. Whether that's 1200 an ounce or 2000 an ounce makes no difference. Gold simply represents how much the currency has been debauched. Gold holds steady while the US dollar flops around like a fish on the riverbank. As the dollar rises- as it has been doing recently because of rate hikes- gold's value goes down. When rates go down and money is sloshing around everywhere- the value of gold goes up. It has always been that way. That's the way gold moves in the short term. Longer term... Gold has a US dollar inverse relationship. It sniffs out dollar debauchery and moves accordingly. It is the perfect barometer. Gold was 35 bucks an oz in 1971. It is 1830 bucks in 2023. That 5000% rise over 52 years represents the lost buying power of a