Something Feral

Digging up the flower-beds.

Wednesday, February 25, 2009

All-Natural Preservatives

The Mogambo Guru elucidates on the value of gold:
Mr Ash notes that Stephen Harmston, erstwhile economist at Bannock Consulting, wrote that "across 2,500 years, gold has retained its purchasing power, relative to bread at least", which is seemingly proved when one considers that "It is said that an ounce of gold bought 350 loaves of bread in the time of Nebuchadnezzar, king of Babylon, who died in 562 BC", which is roughly what it buys today, a stretch of 2,500 years, while the dollar, on the other hand, has lost 97% of its buying power since 1913, less than 100 years ago, when the detestable US Federal Reserve was given its diabolical unholy control of the nation's banks and money by a corrupt Congress and allowed by a corrupt Supreme Court.
I really enjoy this column.

To reiterate an argument made in the last few days, gold is not a priority investment for those without tangible goods, but once one is comfortably prepared (double-checking, and three's the charm), gold is then an excellent method for preserving one's financial state; it is not a mutual-fund, nor is it supposed to emulate the behavior of one. Think of it as trading for a foreign currency. The total amount of purchasing power didn't change, but if the dollar tanks, that currency is still worth what it was worth in 500BC.

I'm still waiting for an argument for this being a "bad thing".


Elle said...

You can't do this with gold.

Something Feral said...

And you can't do this with Federal Reserve Notes.

Elle said...

Point taken. I guess I'll give you this round. ;)