Gold Prices Collapse

It’s just another yellow metal.
Get out before you lose it all !!!

Gold bugs who purchased gold at the high 33.5 years ago still haven’t broken even in inflation-adjusted terms. Heck, **they still hadn’t even broken even when gold peaked above $1,900.
Gold hasn’t just badly underperformed stocks and bonds over the last 30+ years. It has badly underperformed stocks and bonds for the last 200+ years.!!!

LOL… yeah sell it all. After a 100 year steady collpase, the purchasing power of dollars is about to make a come back any day now. :wink:

Maybe you don’t have your glasses on.

I think stocks are fine too. I’m not anti-stocks or anti-gold or anti-heavy equipment or anti-raw land or anti-silver or anti-intellectual property or anti-cans of tuna or anti-Swiss Francs or anti-bitcoins or anti-vintage stoves (I own all of them)… I’m anti-dollar. Only sell your gold if you think you can find another asset to change your dollars back into.

Gold doesn’t lose purchasing power over time. It hasn’t in thousands of years. Would you rather have had your grandfather leave you a $20 bill back in 1930 or an ounce of gold in a shoebox in the attic? You pick. Today, that $20 bill has very little purchasing power left in it. You could probably take a friend to lunch on grampa if you find that shoebox. The ounce of gold is coveted all over the world. That miracle of gold being an indestructible store of wealth has held for 6,000 years.

Here is a chart of the purchasing power of gold over the last 400+ years. How does it look compared to the purchasing power of the dollar chart in my post #3?


With all the manipulation, use of margin for gold contrcts, QE and the games being played using old charts may not apply.

There is no way around the fact that gold has lost at least 30% of its value from the high point.

Market price support appears well below current price levels.

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You just figured that out?

They’ve been touting gold like… forever.

People buy gold because someone scared them.

Same with purchased warranties and alarm systems.

It all depends on what type of gold you are talking about. Physical gold is the only financial instrument that has no counterparty risk. Perhaps that is worth something to you in addition to the metal. It adds a lot of value to me.

I’m not against holding some physical gold.

It is just not the inflation hedge that some claim.

How do you figure? An ounce of gold has about the same purchasing power as it had 50 years ago, 100 years ago, 200 years ago, 500 years ago, 2,000 years ago, and 6,000 years ago. If you have an ounce of gold in your pocket, it really doesn’t matter what century you live in… you can buy the same amount of stuff with it. And it’s fungible around the world.

And the collapse continues. It won’t be long before you can get more for a bucket of pennies than you could for a bucket of gold.

Get more what for it?

The Old Testament states that in 600 BC, during the rein of King Nebuchadnezzar’s, you could buy 350 loafs of bread with an ounce of gold.

In 1997 gold was $480 per ounce and bread cost $1.60/loaf so you could buy 300 loafs of bread with an ounce of gold.

In 2007 gold was $800 per ounce and bread cost $2.50/loaf so you could buy 320 loafs of bread with an ounce of gold.

Today gold is $1243 per ounce and bread cost $3.50/loaf so you can buy 355 loafs of bread with an ounce of gold.

It doesn’t appear to me that the purchasing power of gold has collapsed at all in thousands of years.

Now lets check the dollar. In 1913 a loaf of bread cost 4 cents so you could buy 25 loafs of bread for a dollar. Can you still do that? LOL

More of whatever you can get for it. Give it a few months and you won’t be able to get a good meal for an ounce of gold.

See my post #15.

Sorry you can’t admit you lost BIG time with this last crash of your sentimentally valuable shiny metal. Most sane people understand.

Lost what? The amount of gold I have has gone up, not down.

What crash? Are you referring to spot price in U.S. dollars? My average buy price is well under $500 an ounce and I’ve never sold an ounce of gold in my life. I’ll keep trading paper dollars for physical gold on the dips.

The purchasing power of dollars is what is crashing. An ounce of gold still buys 300 loafs of bread (has for thousands of years).

If gold goes to $900, my life wouldn’t change.

However, if gold goes to $600, I’ll be thrilled. I’ll double my net worth.