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Wednesday, March 9, 2011

True Prices Measured In Gold

Things aren't more expensive, the dollar is simply worth a lot less.


The US Dollar traded in London at 21.67 mg on Tuesday afternoon, setting a new all-time low. Since the US Dollar was created by congress in 1790, with a value of 1600 mg of gold, it has lost 98.6% of its original purchasing power, leaving only 1.4% between here and total worthlessness!

The Japanese Yen also made a new low of 0.265 mg. The Canadian dollar traded at 22.24 mg, off slightly for the day, but 2% higher than its all-time low set last December. The Euro, at 29.91 mg, fell for the fourth trading session in a row, but still sits 3.4% above its all-time low.

The value of US Treasury Bonds fell sharply, with the both Exchange Traded Funds SHY (tracking 1-3 Year Treasuries) and TLT (tracking 20+ Year Treasuries) hitting new all-time lows of 1.817 mg and 1.971 mg, respectively.

The Dow Jones Industrials closed at 261.46, down almost 1% for the day, but still up 3.4% for the year to date.

Crude Oil is trading at 2.18 grams/barrel, up from a recent low of 1.91 g/bbl in mid-February, but still below it's 60 year average of 2.31 g/bbl. Silver, on the other hand, continues its surge skyward, hitting 0.753 grams per ounce – up 11.5% so far this year, following a rise of 41.1% in 2010. The last time silver was this high was February of 1998, when it traded over 0.8 g/oz. Even with this recent strength though, silver is a long way from its 1980 all-time high of 2.8 g/oz.

Don't let the constant barrage of rising prices quoted in fiat currencies confuse you! Remember that these are largely caused by government and central bank shenanigans of one sort or another. Keep your eyes on the true value of things by pricing them in gold, and seek out investments that will grow when measured in gold terms. That's what you need to build a better life for yourself and your loved ones!

FROM
PRICED IN GOLD

3 comments:

  1. So how does one figure out what to invest in to take advantage of this (other than gold/silver itself)?

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  2. I myself invest only in things that will be a benefit when our economy finally enters official meltdown mode. Non-perishable food items, heirloom vegetable seeds, water filters, solar cookers, items for trade and barter, ammo for hunting and self-defense etc. Gold and silver is fine in this system, but you can't eat it or use it for self-defense.

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  3. Brad, I've gone with silver. Gold used to trade at 70 to 1 against silver. Now it is 40 to 1. Both going up. Silver, faster. Also a good supply of weapons and ammo, staple foods, the basics.

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