Thousand Dollar Gold

So what? It used to take about twenty US Dollars to buy an ounce of gold. Now it takes over a thousand of them.

That ounce of gold hasn't changed one bit. In fact, an ounce of gold is still an ounce of gold, just as it has been for thousands of years. It can be used to make the same amount of jewelry, it can be beaten out into the same amount of gold leaf, it can plate the same amount of wire, and in general, can be exchanged for about the same amount of other goods and services as it always could. It buys much more of many items than it used to, thanks to global trade, the productivity improvements of automation and the wonders of Moore's Law.

Unfortunately, those same factors have enabled the mass production and distribution of huge quantities of US Dollars, as well… and this is not good for the value of a currency, however convenient it may be in the short term for bankers and politicians.

Remember that dollars are created and destroyed by fiat. They are mostly accounting entries that can come and go at the speed of light, changing the purchasing power of your bank accounts and investments without notice. Don't be fooled by this slight of hand – keep your eyes on the true value of things you care about by pricing them in gold.

Note that many charts on the site have been updated to March 14th. I am still working on getting the wheat, copper and CAD charts working – please be patient.

If you have questions or comments please email me or call the hotline at 888-868-5656.