Uninformed Financial Press Express Concern For Gold's Demise - Market Volatility Is Normal In A Run
After the end of the second quarter, the financial press is speaking with concern for gold.
Do Prospects For Gold Seem Bleak?
What is not mentioned is that since 2000, gold has over time outperformed both stocks and bonds. You’d never know it.
Figure 1 - Gold vs S&P 500 Stock Index; source: TradingView.com
All fiat currencies are in decay vs gold and silver as currency debasement, speculation and misallocation of assets have burrowed deeply into the real economy.
The long-term decay of government fiat currency is not over by any means.
Price Volatility Does Not Portend The End
As currency decays, there is a natural volatility to the price of real and valuable assets, especially monetary metals, as the process evolves.
If we look at the decay of the Weimar Mark in Germany, there were clearly times when citizens may have believed that the ‘run’ in gold had abated.
The red line below (price change or volatility) bears that out.
Figure 2 - Gold Price In Weimar Marks (Germany) And Price % Change
Our total debt debt levels have not declined nor have the speculative bubbles spawned over the past several decades.
In addition, central bankers are currency debasement experts and they have not suddenly lost their craft.
I personally rest easy.
Best regards,
David Jensen
Great post David. Let the mainstream media pull all their tricks. They are only fooling the weak handed new buyers. All the rest of us are not going anywhere. We know what real and fake money looks like!
I rest my head on a soft stack of silver