GOLD- timing the cycles

Is gold a store of value, no matter when you buy it?

The data suggests that timing counts just as much in gold investment as it does in any other sector.

I remain bullish on gold, but felt that this 'challenging' viewpoint was under-represented on youtube. "What use is a debate with everyone on one side of the stage?"

Sources....

Average income data
http://www.census.gov/hhes/www/income/histinc/h06ar.html

Gold price history
http://www.goldprice.org/spot-gold.html

Category:

Education

Tags:

• gold
• schiff
• hendry
• inflation
• deflation
• economy
• silver
• fed
• dollar
• ron
• paul
• store
• of
• value
• money
• debt

[freedominsomalia]

an hour of work way back doesnt produce as much goods as an hour could today. i shoulnt have given you 5 stars because that is an epic economic fallacy u held/hold/promoted

[flaskofcoffee]

Hi freedominsomalia.

An hour of work is an hour of work to the person doing the work. It is that effort which the gold-owner wishes to preserve, I suggest.

The amount of production in an hour has advanced, yes, but I think the point is that gold remains gold - and an hour's working time remains an hour of time - so comparison is valid.

I think my vid shows that the relationship is volatile - more volatile than I expected - and that is the interesting point I hoped to pass on.

best wishes.

[patriotsundergod]

Good video man! 5 stars!

[magichandpuppet]

Hey flaskofcoffee,

Yes, this is indeed surprising and interesting. My point is really just how I make sense of it as, researching a little the price suppression schemes from articles and such at GATA, it all seems to make sense and actually complements what you present. There is no guarantee that the price suppression game won't continue to disrupt gold's potential as a store of wealth... but I'm all in at this point in hopes that it will fall apart and gold will sore :)

[siggyboss]

Supply is mostly stable. Demand changes based on fear (ie inflation). In the late 70's inflation was a national concern, which decreased as interest rates skyrocketed as the Fed shrank the money supply.

[quadcatfly]

LOL. Gold never changes its value, it is fiat currency that we use to express gold's value that swings drastically. As fiat currencies are slated to collapse soon, gold will reveal its true value. As good as gold! The best way to measure the value of fiat currency is to let the real currency (gold, silver) run free.

Oh and I didnt hear any before gold standard / after gold standard story in this video !!

[davincij15]

An hour of work in the past is worth less than an hour of labour in the future. Why?

Because of population growth and innovation in technology.

Thus, a man who takes from his future wealth via debt is destroying his savings that would give him more in the future. Even though gold moves from over valued to under valued it can never go to zero so timing maximizes wealth, savings in gold guarantees it.

You have 6000 years of evidence of such a guarantee not just 30 years.

[ScrapGoldBusiness]

Update it to the new housing prices please...

[ScrapGoldBusiness]

Excellent Video!!

[strongbadXCP]

What you are forgetting is that paper money replaced gold as the common money during the period you are talking about. Therefore, gold's role was temporarily usurped, thus artificially driving demand down. If you look at the period of 1790 to 1910 in the United States, gold held its value almost perfectly.

[soundzero]

yes that chart is very interesting however you have left very profound fact in that video. Your data goes back to mid 20 century then beginning of 21st century. That's less than 100years. What is profoundly different today than any previous decade is that we now have 14 trillion dollar national debt. Money supply was doubled to 12 trillion by 2009. Between 1913 thru 2008, money supply hoovered below 7 trillion. Also, in the past US was vastly production based economy. now consumer driven.