DJ, any way you measure it, gold is not stable in value, but leaps up and down like a yo-yo. Comparing gold with house prices, you will see house value relatively stable, while gold leaps around like a boy without Ritalin.
House prices and dollar prices, wages, land prices, were all more stable over 40 years than was the price of gold. If you price everything in gold, you could say that house prices zoomed way down in 1979 and then zoomed way up to Y2K and then plunged. But that's like saying a dog is wagging a lot because compared with the dog's tail, the dog's head does indeed appear to be rapidly moving.
Salaries, houses, land, food were all stable compared with US$ though there was a long and steady inflation. Gold was the psychotic bi-polar measuring stick, not a stable standard in a tumultuous aether of financial relativity theory. $35, up to $800, down to $270, up to $1000, down to $700 is not calm and steady sagacious store of value.
Mqurice |
