Gold, page-3392

1919 - $20 (19.95 US) Bill was just a paper receipt for 1 troy oz of Gold...purchase equivilent of that 20US today = about 4c, 1oz Au purchases approx. $1070US, yet 1 oz gold still remains as 1 oz gold....aka...no change, constant. Therefore those valuing gold via fluctuating & tenuously backed Govt. fiat receipts have got it the wrong way around. Aristotle (I think) circa 4BC on 5 charateristics of good money:

be durable (not Wheat,Barley, Corn, Cows, Goats - it rots or dies).
be divisible (not Arts, Collectibles -can’t cut/break things them up for chump change).
be convenient (not Lead/Iron etc - takes too much & too much around to be of currency value)
be consistent (Land can’t be money - each plot different).
should have an intrinsic value in itself (exactly why all fiat/paper money is eventually trouble).

Many Centuries notwithstanding, among the 92 naturally occurring elements, gold has proved the best to meet the above criteria, with silver second. One needs to stop thinking as one's told, begin thinking for oneself what is a good measure of value. If the inches on my ruler moved closer together at the same rate Fiat has moved since 1919, instead of 5' 10" I wonder how tall I'd really be now?

Fiat, 'tho handy for the butcher, baker & internet, does;nt fit. It ever devalues over time but, conversly, is easier to come by via the 'print to suit' accepting that it ever buys you less. Like the $100 bill in your wallet, holding gold earns you nil. Both will earn if you're silly enough to lend them out, bear in mind 'tho, you risk seeing neither gains nor your original again.

The value of 1oz gold to a wad of fiat? Only the law of supply & demand will properly dictate this once the debt monitizing bubble has exploded (as oppossed to just burst), AU supply is currently pretty finite & just like Buff Oysters, there's none left after the Season, all taken. In the interim, said gold continues to hold it's middle digit upright in defiance.