OPINION: Gold, the mirror of money13 Mar 2022 22:02
OPINION
The political climate is changing, the Ukraine conflict is keeping us in suspense. Since February 24, we are experiencing a mini-crash on the international stock markets that is reminiscent of the period before the great crash of 1929. The Black Friday on the New York Stock Exchange hit Europe with full force 93 years ago. It took the global economy 25 years to recover from that.
In crisis times such as this one, a look in the mirror helps. At gold, which reflects the true value of every fiat currency. Gold de facto never lost real purchasing power. And that’s been the case for the past 3,000 years. Gold only increases or decreases in relation to certain fiat money such as euros, US dollars, etc. Back in ancient Rome, you could get a toga, an equivalent to a tailored suit today, for an ounce of gold. Gold in euros and dollars reached a new all-time high, spot gold has never been as “expensive” as it is now. This could lead some to wrongly assume that there is little upside potential for a further increase. Smart investors are buying gold at this very point, where long-term resistance measured in fiat currency is being broken.
De facto, the gold-money ratio reflects one fatal inconsistency: all gold ever mined on Earth (210,000 tonnes) would fit in a cube with a 22-meter side length. This is currently the equivalent of 13.6 billion dollars.
All the fiat money printed and central banks issued fiat money is several times more. Do you see the error?
Baha Breaking the News (BBN) / CB
https://www.teletrader.com/opshnshon-gold-the-mirror-of-money/news/details/57479077?internal=1
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