yeah it took awhile for me to realize that gold is not an investment, its a store of value and because its constant makes excellent currency. When you listen to all the inflationists what they don't realize is that even Murray Rothbard talked about credit deflation due to credit contraction, because the credit acts like money and there is not much of this around then the currency itself appreciates in value. The FED comes along and prints to cancel this out, but this doesn't have a uniform effect intially and you have to guess where the new money is going first which makes things even harder to guage as stock prices can go up, but food prices stay constant, now you have to ask yourself is the stock really going up or is that where the new money goes first.I was kind of thinking that people have been listening to the concept that inflation is sucking the life out of the economy and are allowing some deflation to get it moving again.
I started seeing all of the commodities start on a downward trend about a week back. At least that is what it looked like to me. It could be wishful thinking.
So to try find out REAL UP AND DOWNS by extracting the fluctuating currency values you have too look at the fundemental commodities like oil, copper, weat, cotton also gold and silver.
To be honest with you this is where I get left in the dust, because I realise that oil, cotton etc can fluctuate through lack of demand in a bad economy, but for me gold is a good anchor point to sort the weat from the chaf.
Serioulsy the government poeple are so clever with their sneaky taxes that indirectly links the gold to the dollar, we should basically go black market with this stuff, it is afterall not illegal according to the constitution.