gold price denominated in fiat currencies, page-7

^^^


E.g. Joe Bloggs has an epiphany after the tech boom wreck in 2002 and realises the Federal Reserve is rapidly expanding money supply. He decides he is going to buy some Gold as an alternative to storing his wealth in USD. Joe has $200,000 in USD on deposit with his bank Too Big to Fail Pty Ltd. He decides to use most of it ($180,000) to buy 600 o/z of gold at $300 USD per oz. Today he can convert his 600 oz of gold for over $1,000,000 in USD and purchase a house, car or whatever he desires. Had Joe left the $180,000 in USD on deposit in an environment of rising money supply at say a 6% average over this 10 year period (generous i know) he would now around 320,000 in USD, instead of a bunch of shiny metal bars he can swap for a million greenbacks. Considering insurance costs, storage costs and buy/sell spread and Joe is still pretty happy he decided to buy some GOLD, especially as he doesn't believe in the govts. "duked" inflation statistics, something he believes the value of his gold in USD confirms.

If only we all had the foresight of Joe Bloggs......