Inflation adjusted gold price

Discussion in 'Gold' started by mmm....shiney!, Nov 2, 2020.

  1. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Gold and silver are ultimate crisis currencies. We haven't had a real crisis in 60 years. During WWII, a lot of millionaires abandoned their million dollar businesses and properties, and left in a boat with only a suitcase and some gold.

    If there's an EMF event, you need gold and silver.

    Looking at the state of the "democracy" in the USA, I think @JohnnyBravo300 needs gold many times more than we do.
     
  2. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    I think @JohnnyBravo300 is mainly into silver, so that might be a problem for him when he will need to flee a future apocalyptic USA for refuge elsewhere.

    All that extra silver weigh might sink his boat or bugger up the suspension on his getaway vehicle, leaving him stuck and stranded where he is.

    That is the one thing I hate about silver and one thing that gold has got an advantage over silver on.
     
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  3. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I'm sure @JohnnyBravo300 will switch to gold at an appropriate time.

    The USA is a big country, so he might still be safe in the small town he is in. The smurf cities will be a different matter. The tech bubble won't last forever and the imports that feeds Amazon and the bubble will be not cheap forever. Once tax revenues start to fall or the dollar loses the reserve, the cost of energy starts to rise along with hyperinflation, the smurfs will rebel against their own party.

    They will have no jobs (fake tech bubble jobs), no money (no reserve currency) and no energy (green deal).

    Well done America!

    But there’s a bright side, when there’s no energy and oil, those who can’t afford a Tesla will need to cycle or walk as they do in Venezuela.
     
    Last edited: Nov 7, 2020
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  4. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    We wont need to flee and we are safe here so I dont worry about that, and hundreds of miles from a city.
    We have already thought about all this coming and have been preparing for years.

    Theres no way we could flee and carry my metals and everything else we'd need. It's just not reality to bug out somewhere else in my opinion.

    Gold would be much easier and lighter but I was playing the ratios so I've bought more silver over the years.

    I'm prepared to make my last stand at my home if it ever comes to that but I'm not worried. They have to find us first!

    We have a large parcel of acreage with about 7 family members currently living at 3 different homesites here so we arent alone and we have each other just a short hike away through the woods.
    We all have about 35 acres each so plenty of room and resources and surrounded by millions of acres of forest and wild game.

    Anyone in the cities that think they will throw on a 100 lb rucksack and run away with their family to live in the woods should think twice in my opinion.
     
    Last edited: Nov 7, 2020
  5. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Probably the most sensible thing you've said.

    I've done a few multi-day walks, they're hard work, a physical challenge not to mention the pre-trip logistics. And all I was doing was walking for pleasure - while spending those 3 or 4 nights in the bush I didn't have to give much thought to survival, food, drinking water etc because it had already been pre-planned. I can't imagine how difficult it would be to survive for any length of time in those types of environments once the supplies ran out and you were forced to spend a good part of your day just surviving.

    Stick to the environment you're most familiar with.
     
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  6. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Updated to include silver's performance and it's even worse than gold's:

    [​IMG]

    If anyone wants to get depressed then you can wander on over to the article where the above chart was listed and check out the inflation adjusted prices of both gold and silver as of Jan 2021 using the Shadowstats measures of CPI!!! Not that I'm a fan of those stats.

    https://www.bullionstar.com/blogs/r...al-inflation-adjusted-gold-and-silver-prices/
     
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  7. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    Who gives a fuck what the inflation-adjusted gold price is when all the figures are just government lies!

    According to the usdebtclock.org

    This is what the unmanipulated dollars to the gold price is right now: $14,107.









    [​IMG]

    [​IMG] [​IMG][​IMG]
     
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  8. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Regardless of whether you think the official statistics are truthful or not there is very little alternative to help guide the investor to make rational decisions when it comes to economic data. For example The ShadowStats data paints an even more sombre picture.

    Back to the usdebtclock:

    1. The usdebtclcok.org uses data supplied by US Treasury, US Census, The Federal Reserve etc anyway.
    2. the value $14 107 does not refer to the unmanipulated price of gold. It is a ratio representing the increase in US M2 divided by the world's production of gold in ounces. It is a measure of how many multiples of cash, deposits and highly liquid assets have been created compared to the amount of gold created on an annualised basis.

    The inflation-adjusted gold (and silver) price provides valuable insight to investors seeking to protect their wealth from inflation tax. It shows that silver is a poor performer overall and that gold likely performs better during periods of financial stress. During periods of growth investors would be better seeking returns in other markets. The key takeaway is that investors are likely to be better off increasing/decreasing their levels of exposure to gold in order to take advantage of the returns from other asset classes.

    The challenge is finding assets that minimise opportunity cost, can weather the downturns whilst also providing returns at or above the annual rate of inflation that do not penalise investors. That's incredibly difficult for most laypeople. The system is designed to punish savers and reward debtors.
     
  9. lucky luke

    lucky luke Well-Known Member Silver Stacker

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    re: the market showing a preference for government issued fiat over gold. No shit shirlock! Especially after the US$ survived it's 1975 decoupling from the gold standard.
     
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  10. lucky luke

    lucky luke Well-Known Member Silver Stacker

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    using that long term graph as base for reflection, a lot has happened co-inciding with WW2 and aftermath (ie "globalisation" + capitalism + Global entities such as the UN = "things" never seen in previous lifetimes). How sustainable is this kind of growth/control?
     

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