Gold and hyper inflation

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betterinvestmentthanshare

Well-Known Member
Please note my calculations are rounded off

A kg of T-bone steak in 1966 was .69c kg, gold was $40oz

today a kg of t-bone is around $35 kg and gold is $5100

t-bone = 5000% increase since 1966
Gold = 0ver 17000%

My house in 2004 cost $250k, in gold terms in cost 384 Oz

today that same house has doubled in fiat term but only cost 96 ounce

perspective
Measure everything in gold for it’s true value
The question: have we generally always been in hyper inflation mode without knowing it or understanding it.
 
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Ag bullet said:
Yes, gold doesn't go up. Fiat goes down.
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I’m not so sure
Looking the % increases for everything vs gold increase, it tells me gold is way ahead of inflation. So gold is not just a hedge for inflation, it also has great wealth investment properties as well.
The property mentioned has 2Xin fiat n fiat value since 2004 but gold has almost 4X

since 1966, food (in a general sense) has 50X yet gold has 127X Gold beats inflation hands down
 
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I thought I’d better add although method of calculating costings and % increases are the same regardless where you live in the world, the outcome can be very different depending on what country you live in.
My calculations were based on the Australian market.
For example, I did Singaporean gold vs a Singaporean bank share plus fully franked dividends vs
Australian gold vs Australian bank share plus fully franked dividends both over a 20 year period
There is a noticeable difference
In Singapore, gold outperformed the share by a little bit
In Australia, gold shit all over it.
So the impact of the country’s currency as well as gold and shares of that country performs very differently
Something to keep in mind
 
betterinvestmentthanshare said:
I’m not so sure
Looking the % increases for everything vs gold increase, it tells me gold is way ahead of inflation. So gold is not just a hedge for inflation, it also has great wealth investment properties as well.
The property mentioned has 2Xin fiat n fiat value since 2004 but gold has almost 4X
Click to expand...

Last financial year both gold and silver made an annual return of ~40% in AUD. That's a decent investment IMO.

betterinvestmentthanshare said:
So the impact of the country’s currency as well as gold and shares of that country performs very differently
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This exactly. The fiat currency you convert gold to matters.
 
I also heard that prior to 1974 gold was a very significant subject in economics and finance for Universities. The subject was dropped and only a mention of going off the gold standard is now whispered. Since then gold has repeatedly been downtrodden as just a hedge against inflation or just a store of wealth or just a relic from the past.
Just like most things, when the powers that be don’t want you to see the truth and down play, point their finger to look elsewhere, its usually a good sign to stay very focused on that very thing they don’t want you to
 
I hope it hits the $2600 level again but I'm not counting on it.
The way gold has been so strong with this run it might not drop that much.

Ive heard some gurus mention that number but I have my doubts.
 
JohnnyBravo300 said:
I hope it hits the $2600 level again but I'm not counting on it.
The way gold has been so strong with this run it might not drop that much.

Ive heard some gurus mention that number but I have my doubts.
Click to expand...
Many guru’s predict lower and higher prices , so why aren’t we at those prices now? These gurus pedal their predictions to suit their agenda without looking at the whole picture. It’s human nature to only listen to what we want here.
All asset prices are reactionary to the environment that’s happening around them.
All we can do is research the asset and it’s environment, use our critical thinking skills (we all have it) to calculate the most likely outcome, remembering that the information you seek is generally in the opposite direction they want you to look.
Anyone for steak, it’s never been cheaper :)
 
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