Old Project Avalon Forum (ARCHIVE) - View Single Post - Why Gold Is Dropping When It Shouldn't (by Alex Wallenwein)

TAXMASTER · 10-26-2008, 03:13 AM

relatively speaking, purchasing gold should be to preserve wealth, not necesarily to make money. if all currencies go down, then the relative value of gold will be the same. in 1920 when gold was $20 per ounce, it took about 25 ounces to buy a new ford, today at $800 per ounce, it takes about 25 ounces to buy a new ford. right now the price of paper gold is somewhat deflated for 2 reasons. first is that gold's price fluctuates on a yearly cycle and gold tends to go down in october and early november. it increases in price in late november. second, the dollar is being artificially pumped up for several reasons, but it will only be temporary. once the inflation factor kicks in from all the us dollars being printed, then the dollar will fall like a brick, inflation will take off and gold will rise to new highs.

Namaste'

10-26-2008, 03:13 AM	#24
TAXMASTER Avalon Senior Member Join Date: Sep 2008 Location: Terre Haute, Indiana Posts: 117	Re: Why Gold Is Dropping When It Shouldn't (by Alex Wallenwein) relatively speaking, purchasing gold should be to preserve wealth, not necesarily to make money. if all currencies go down, then the relative value of gold will be the same. in 1920 when gold was $20 per ounce, it took about 25 ounces to buy a new ford, today at $800 per ounce, it takes about 25 ounces to buy a new ford. right now the price of paper gold is somewhat deflated for 2 reasons. first is that gold's price fluctuates on a yearly cycle and gold tends to go down in october and early november. it increases in price in late november. second, the dollar is being artificially pumped up for several reasons, but it will only be temporary. once the inflation factor kicks in from all the us dollars being printed, then the dollar will fall like a brick, inflation will take off and gold will rise to new highs. Namaste'