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What May Be Worth More Than Gold In An Emergency
The pitchmen filling the TV airwaves with claims that gold is vital to financial independence and survival are leaving out an important piece of the story. Recent history demonstrates that it is entirely possible for any precious metal, including gold, to lose all or most of its value.
Gold is not immune to the market as the TV pitchmen keep claiming. In fact, it is possible for gold to sink to a very low value and stay at that low price for long periods of time. That’s exactly what happened between 1980 and 2004. The thirty-year gold chart below shows what the markets can do to precious metals.
Gold, as you can see, rose to its highest price in 1980 at around $680 an ounce; it did not return to that price again until 2005, around 25 years later. Instead of retaining value, gold actually dramatically lost more than half of its value by 1984 and dropped to even lower prices between 1998 and 2002.
This ugly picture gets worse when you figure in the rate of inflation over that time. The combined rate of inflation for the years between 1980 and 2001 was 114.8%. That means gold was worth even less because the price reported in 2001 when gold prices hit their lowest was calculated in 2001 dollars.
Source: http://www.offthegridnews.com/2013/07/06/what-may-be-worth-more-than-gold-in-an-emergency/
This is a good piece except you fail to reveal that all of the fluctuation is due to manipulation, not to free market forces. I guess you could then argue “so what, the returns are the returns” whether they are manipulated or not. I get that argument.
The counter to that is WHEN the manipulation comes to an end- because it has to, the dollar will be worthless and gold/metals will skyrocket. There is simply no way out without a lot of pain. That’s when your argument will be wrong.
I disagree with them when they advise a debit card is worth more than gold, and where they state, your money is better off in a bank, try a CD. Then on closing, they say that gold is a target for thieves, because gold is very valuable right now?? Actually, gold and silver are on sale right now, this could be a great time to enter the gold and silver market.
Listen to the outlaw…..
One theory I’ve heard about gold is that we have very little left. Fort Knox is empty. The UK government sold all our gold reserves at rock bottom price. Where’s it gone? The aliens took it to Nibiru to combat their climate change problem. May be true, may be not.