SilverBug

Gold: Protect Yourself from Future Inflation

The writer meant monetary inflation (or growth of the fiat-money supply), not price inflation (price changes, which could result from an increase in the supply of money, scarcity of goods, increase in the demand for goods, et cetera).


On Nov 10 11:14 AM JCW wrote:

> I have to add my two cents after reading this. Generally the relation
> between inflation and gas prices is misunderstood. The gas price
> increasing by 300% would only reflect inflation if inflation caused
> the money supply to triple in those 6 years. Money takes on average,
> with creeping inflation, 20 years to double. I don't think our inflation
> is at 25% a year, which is what it would take for 300% over 5.<br/>
>
> That is why gas fell back down, and historicaly, gas doesn't follow
> inflation anyway. I'm sure you can find a graph of gas vs inflation
> through google to verify.
>
> That all being said, yes gold is a good buy . Inflation has been
> rising from 3% to almost 10% now, with some people forecasting 20%
> in the near future. There are other ways to hedge against inflation
> though.