$1000 Gold!

Don’t you wish you had some? No, I would rather own real estate or dollars that were worth something. Gold is not worth more than it was worth 100 years ago. The dollar just does not buy much these days. How much less? Well I remember when gold was priced at $25 an ounce and was used to back the dollar. This kept the government from printing more money than it had gold for backing.

Then some moron decided to sell all the gold in fort knox and start printing federal reserve notes. That prevented folk from converting their greenbacks to gold. Soon after, conversion became impossibile because the government no longer had any gold.

So now when you see gold at $1000 an ounce, what it really means is that it now takes $1000 to buy today what could have been purchased for $25 in the 1950s.

The only folk making money off gold investments are those who sell it. Even then they only make profits off the shipping and handling.

We often hear that the same $20 dollar gold coin that would have bought you a nice suit in 1850 will still buy you a nice suit today. Very true. What they do not tell you is that had you invested that $20 in a savings account in 1850, your decendents could buy the entire clothing store today.

Sometimes even historians don’t learn from history. Guess it is not good enough to know how to read. You also need to understand what is being read.

Explore posts in the same categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: