“Measured in Gold, Prices Are Falling”

With his own brand of gold bug recovery therapy, Keith Weiner checks in again with a sound view of gold and the way gold bulls should view it (and the US dollar) if they want to succeed over the long-term. As Biiwii posts this morning…

The Dollar Works Just Fine

Prices have been rising for 100 years. There is no reason why they couldn’t go on rising for another 100. Or 1000. The inflation argument, as we call it, does not reach anyone other than those who already think the dollar is failing. The rest shrug it off. Most people really care only if their income goes up slower than prices go up.

As an aside, this is an inaccurate view. Measured in gold, prices are falling. This is the simple consequence of relentless productivity improvements in every industry from mining and farming to distribution to manufacturing. In an article for Forbes, Keith found that the resources that go into producing a gallon of milk fell by about 90% between 1965 and 2012. And wages are falling also. Read the article to see just how much.

Anyway, people care if their wage is falling faster or slower than prices. Mainstream economics encourages this with its paradigm of purchasing power. They don’t encourage thought about how much cheaper things really have become.

The above is just the beginning of the virtual 12 step program for Gold Bug recovery. Check out the whole article linked above and again consider Keith’s rational viewpoints. It’ll suit you well moving forward dear sometimes over emotional gold bug.

Avoid the crack AKA the “dollar collapse” and inflation touts out there. They will lead you astray every time at exactly the wrong moments. Think about gold in a different way and you will be a different investor. *

Side note: The article also moves on to cover Keith’s weekly suppy/demand fundamental view of gold and silver.

* Of course, some of the most ardent Gold Bug outposts are so thickly settled into dogma that this stuff does not even register. These outposts are in the business of keeping their members primed with emotion through politics and propaganda.

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