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The US Dollar Continues to Lose Value

Compared With GOLD

COMMENTARY: Saturday, August 29, 07:41 PST

Continuing my look at just how other market’s values compare with that of spot Gold, let’s take a look at the major reserve currency of the planet (at least for a little while longer), the US DOLLAR.

The chart below tells the tale well.

The big red declining arrow shows that it takes more and more dollars to buy an ounce of spot gold as time goes on.

That’s why Gold that used to cost $350/ounce now costs over $1235/ounce.

Gold hasn’t changed it’s nature, but, the US DOLLAR has become more and more inflated as the debt has soared in the US, so, it takes more and more of these inflated dollars to buy the same ounce of spot gold that used to be purchased for far less.

Gold will tell you the truth about the value of things. It will tell you in blunt terms just what’s real and what’s really only a decreasing value, fictional paper asset.

Stocks are paper assets in the end.

So is paper currency like the US DOLLAR.

The last two posts have shown that the value of Stocks and the US Dollar has been dropping relative to spot gold.

Make not mistake.

I’m not claiming that gold is an investment. Unless one is a speculator and trading the markets with that end in mind, gold functions as an honest broker of the concept of real value.

Gold has held it’s value within an excellent range over the centuries and has saved family fortunes and lives countless times throughout history.

It will do so again, so, it’s best to watch it closely and to use it for what it’s very good at doing: maintaining value while fiat currencies lose theirs. - George

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