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1. I think that gold can only be accurately valued against hard assets and over time. I’m not the first to say that valuing gold in dollars doesn’t really work. It’s inaccurate to say that gold has gone up x number of dollars when in reality the dollar has simply declined. And gold, like currencies and commodities, vary daily and monthly and ought to be looked at over a year or more to value well, again against hard assets. An ounce of gold will still buy a pretty good mens suit in NYC. It hasn’t gone up much over the last 100 years when measured this way for example.

   So to profit from it one must buy it in fiat then sell it back for fiat and quickly turn that fiat into a hard asset such as land to actually profit. I don’t deny that it’s a long term store of value historically, that’s not what I’m talking about. I’m talking about actual profit from the buying or selling over the medium or long term.

   I’m interested in Survival Blog’s thoughts on this. It’s not much talked about in ‘gold circles’. Thanks.

   1. Gold’s value relative to the dollar is all that matters. It does not matter that the dollar went down or the value of gold went up. If I can buy a house for $200,000 and my gold is worth $200,000 does it matter that the gold is up because the dollar is down? Vice versa if the exact same amount of gold in my possession is only worth $150,000 should I be excited that the low value of gold is because the dollar is up? It is an arbitrage situation in which I don’t really care why one commodity is up and the other is down relative to each other. I simply decide to cash out and benefit or wait until I can.

      For example; I am reminded that when I drove to Alaska in 1974 the Canadian dollar was worth slightly more than an American dollar. One gas station that I stopped at the proprietor was quite happy and boastful that the Canadian dollar was worth more. But it actually made zero difference to him except his pride. His dollar still bought the same in Canada as it would if it were worth less than an American dollar. The small or short term fluctuations of the value of your currency don’t make much difference in your day to day life but if you use it as arbitrage it can make you wealthy.

      1. I traveled much overseas some time back. I would check the cost of a Coke and then do the currency conversion rate math to determine if the worlds most common product was cheaper per milliliter or more expensive. It’s the only real comparison I had but it wasn’t fool proof either as some countries has bottling facilities and some did not.

2. According to our Constitution the “Dollar” is a unit of measure and is based upon gold or silver. That is to say the “Dollar” is so many grains of gold or silver; this is the supreme law of the land and has never been amended. To say gold or silver is worth a certain amount of Dollars per ounce is exactly opposite of what the intention of the founders and State assemblies ratified in our Constitution. Gold and silver is not worth any dollars per ounce, the dollar is worth so many gains, ounces, pounds of gold or silver. Once the American patriots and citizens in general understand this then something monumental will happen …

3. But they are not American dollars, they are fed res notes, owned by a private corporation

4. In 1912, forty $20 gold pieces would buy a high end Ford car, about $800. Today forty $20 Liberty Gold Double Eagle (Cleaned) coins at roughly $1250 per coin, will buy you a high end Ford Car, $50,000. The cars aren’t really comparable, but the price is.

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