Alex Stanczyk

Gold Price and the Money Supply

One way to value gold is not based on its increase, but rather its lack of decrease.

Gold is simply a way to store wealth that isnt diminishing in buying power over time.

Compare it to dollars, that are inflating at a rate of almost 18% a year, thus losing value at a rate of 18% a year.

Gold isnt being inflated.

2000 years ago an ounce of gold would fully clothe a man in the finest robe, sandals, hand crafted belt etc.

Today that same ounce of gold will clothe a man in similarly fine attire.

It holds buying power (and no I am not talking about shot 20 year cycles...thats what people focus on because in an inflationary economy ROI sucks up all of the common mans attention).

Thats its value.