I was examining gold relative to the USD monetary base, and found this: http://inflation.us/americas-gold-backs-record-low-monetary-base-percentage/ . I'm not sure I could call 2 cycles "periodic" but if so then we are "due" for another. It generally occurs when there is loss of confidence in the currency; however USD is still in a privileged position for now. Price movement relative to other fiat currencies indicates the perception of higher value of USD. This has caused gold to go down in terms of USD but over the longer term all fiat dies - USD will probably be last, but it's not immune. This helped me frame a few things: http://www.zerohedge.com/news/2015-...verything-if-we-are-survive-strange-new-world . "Fiat currency is shown then not to be a storage of value whatsoever. But only a representation of strength of its respective economy." "Currently the USD has strengthened way beyond its historical and fundamental relationship to the economy." I believe it is the panic of other currencies rushing to USD causing it temporarily to go up in strength, but it has the same fundamental issues with lack of real growth as the other countries. It is unnatural for most people to think in terms of "short USD/long hard assets", but with the fiat crisis it becomes clear that fiat is just another asset class, one with diminishing value over time. Since we currently fight all crisis with money creation, there is only one direction this can go; I believe it will accelerate as desperation leads to bad policy decisions (ie, "fighting" deflation at any cost even though it's the natural result of the debt we've created). Dollar strength, measured in other currencies, is a relative measure. If all currencies are losing purchasing power, that should benefit gold. I am not a gold bug by any stretch, but my concerns over the value (and loss of value) of fiat are causing me to seek PMs as a tangible store of value that doesn't care what happens to USD or any other fiat currency. I also decided I wanted it "in hand" because paper metals trading cannot be trusted. Does anyone have a recommended online dealer with low spread over spot? I had considered a gold/silver mix, because silver might increase more, but I think gold has a higher perceived value and demand during crisis, and it has a higher value/weight ratio. I wasn't sure if I should just get gold eagles which has a bit more premium, because of liquidity? Any recommendation and reasoning on preferred format (coins/bars, size)?
I prefer coins because they are harder to fake and easier to verify (although gold eagles have been faked quite successfully). 1oz if you want lower spread, fractional (like 1/4oz) if you want more liquidity. It all depends on your expected future sales channel.
I was expected to use dealer buyback, and just use gold as a wealth preserving mechanism and not for transactions. I am considering that silver 1 oz coins or bars might be a better transaction unit if it comes to that, in which case the silver eagle (currently out of stock) might be good. I suppose it's best to have a mix of assets (including other durable tangibles).
1/4 and 1/10 would be less worth counterfeiting and more difficult, and more liquid. Older coins also are more individualized, scratches, etc, and so less likely to be faked, As when they are detected they can be described and avoided.
This was 1930. Average Cost of new house $7,145.00 Average wages per year $1,970.00 Cost of a gallon of Gas 10 cents Average Cost for house rent $15.00 per month A loaf of Bread 9 cents A LB of Hamburger Meat 13 cents Pontiac Big Six Car $745.00 ALL HAIL THE MIGHTY USD! lolz
for interest sake the average price of gold in 1930 was US$20.65 http://www.nma.org/pdf/gold/his_gold_prices.pdf some quick sums- 1930- US$20.65 (1oz of gold) divided by $.09 (1 loaf of bread) = 230 loaves of bread. 2015- US$1154 (1oz of gold) divided by $2.50 (1 loaf of bread) = 461 loaves of bread. the same 1oz of gold now buys twice as many loaves of bread. 9 cents, well, we all know what that buys these days. the mince price 1930 v 2015 works out to be almost the same when compared to gold. pretty cool!
A loaf of bread goes for 85 cents now at all major supermarkets. So 1oz of gold gets around 1,400 loaves of bread. I can't taste much of a difference between home brands and the others.
I don't know what the average interest would be over 80 years, but at 5% that 9c would be about $6.25 And closer to $15 at 6%
85 cents - for real???? What's the rest of their basic food costs like? Cheapest I can do around here for a loaf is $2.50 and I've given up on that for the $4 as the dearer one is actually worth eating.
Yep, 85 cents: http://shop.coles.com.au/online/national/-5377163p But that's not bread, it's processed goop that looks like bread.
It could be mostly a waste of money if one is buying it for nutrition. This ACA story was when home brands were $1. Budget bread gets nutrition tick Supermarkets have cut prices for home-brand bread to as little as $1 a loaf, but the belief that it is low-quality steers many shoppers towards more expensive brands. Now, an Aussie nutritionist has busted the myth that cheapest is nasty with some surprising comparisons that will have budget bread back on the shopping list. http://aca.ninemsn.com.au/cooking/8272539/budget-bread-gets-nutrition-tick
that's uncanny! almost everything has remained the same value in terms of gold. except the coles goop bread. lol good hedge or what? got a source for those figures jp shmorgan? the figures work out so well that one might be forgiven for thinking they were worked back from today's gold price
The body will survive on anything. Doesn't make it quality nutrition though. And that Coles stuff has imported ingredients, screw that. If we can't make our own bread here then we are doomed, should be boycotted on that alone.
Ingredients? I don't know about that. Bread bombshell It's the dollar bread bombshell. A Current Affair puts supermarket breads to the test. The cheap loaves versus the expensive big brands. Are you paying for quality or the chemicals that make it last longer? Results: When did the bread develop mould? Coles on day six Woolworths and Baker's Delight on day seven Aldi on day nine Tip Top, Wonder White and the Artisan bread all appeared mould free after 10 days. http://aca.ninemsn.com.au/article.aspx?id=8684295 Interesting to note where Baker's Delight who bake their bread in store fresh daily was positioned. Are the home brands really the worst and are the expensive breads really the best for you?
Well I've always gone for sour dough and 'artisan' breads - even back when they were called 'breads'. I don't count the $1 a loaf 'white bread' as something I'll ask my body to digest at this stage.
