Back in 2006 (and well before), the blogger was touting a simple
message of perspective with regard to gold. This perspective is
rooted in the idea of something of monetary value in a world so
obviously off the charts when it comes to sound stewardship of monetary
systems.
Here is an updated yearly chart of gold dating back to
the inflationary hysterics that were in play when I was a very young
man. All throughout the secular bull market we currently enjoy, we who
understand value have had to endure hatchet jobs in the media regarding
the ancient relic:
"You can't
eat gold!" as they say.
Yes, I know; why would anyone want
to eat a sound anchor to
monetary value in a (mostly) civilized world that still operates on a
currency basis? Why would anyone want to eat a heavy metal that will become the surrogate for
human monetary and trade interaction including in the things that we can eat; in the things that we do
need to survive and prosper? Gold only has all those centuries as a
civilized medium of exchange to back it up.
"A deflationary price spiral will bring gold
down and end the mania in the yellow metal!" they say.
Oh
really? Well, you have been saying that for the majority of those
green yearly candles on the right side of the chart. Your continued
doubt assures that you will finally be buying a candle well higher than
the current one. If we get a deflation, it will be an interim event and
guess what? Gold's real price is going to rise during said event, even
if its nominal price declines temporarily. Those phases are what smart
investors call 'investment opportunity'.
"But, but, but…"
No 'buts'
about it, forget your assumptions and gain some perspective.
