It's Friday and we need some quick perspective to start up our day. Here it is. Gold is not an investment. It is the original hedge. Gold never changes value. It is the currency you do business in that changes value. I will say that again;
Gold never changes value. It is the currency you do business in that changes value.
So when you see gold up from $700.00 an ounce to $900.00 an ounce what does that really mean? It means that the capital markets or in this case the gold experts think the value of the US Dollar has decreased in that time period by 23%. ("1-700/900=0.233333 is the math calculation for those who forgot how to determine percentage change). Well that's alarming. What we are seeing is the value of the US dollar being eroded by over leverage and over printing by our government. The history of Fiat or Paper currency is that it always trends to zero value. Well that's scary enough to think about, but it will be a gradual process. This is because the value of the US dollar is heavily determined by the relative value of the currencies of its trading partners.
These are huge concepts that miles of documents have been written about. Send me a question or comment and I'll respond to it.
Perspective based upon knowledge is ultimately the most valuable building block in business. It is developed incrementally and over time.
Build value everyday.
Bradford van Siclen
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