PS: If the USD still used a Gold benchmark rather than the peers' currency basket,then it would have devalued 600% over the past 20 years..."
"According to the latest data from the ABS, Australians are richer than ever, due mainly to the booming housing market and gains in financial assets.In the March quarter, the wealth of Australian households rose by 4.3% to a record high of $12.6 trillion.Although real estate was the main driver for the gain, wealth from superannuation and shares also contributed significantly.As a result, the average wealth of an Australian increased by 4.1% (or $19,494) to $492,055 – which apparently is the highest in the world."
Do you see gold there?
And if you bought your gold 9 years ago then you would be incurring a loss as the pog is today at about the same level as it was 9 years ago and you would have during all that time incurred storage and opportunity costs.
Do you want a model for the pog? Then use the link bellow. If you find it hard to follow then remember what follows keeping in mind that it was written in 2011 when hyperinflation around the corner was the official goldbug catch phrase.
"The logic, if you think about it, is pretty intuitive: with lower interest rates, it makes more sense to hoard gold now and push its actual use further into the future, which means higher prices in the short run and the near future.
But suppose this is the right story, or at least a good part of the story, of gold prices. If so, just about everything you read about what gold prices mean is wrong.
For this is essentially a “real” story about gold, in which the price has risen because expected returns on other investments have fallen; it is not, repeat not, a story about inflation expectations. Not only are surging gold prices not a sign of severe inflation just around the corner, they’re actually heard "
