Sunday, November 9, 2008

On Gold As Money II

I created this chart with information I colleceted from www.measuringworth.com. It is the NY Market price of gold per troy ounce from 1905 to 2007. The price of gold per ounce was fixed for several years leading up to the removal of US currency off of the gold standard. But what is interesting is what happens to the price of gold per ounce from the early 1970's forward. Look at how the price skyrockets in terms of fiat currency no longer backed by gold.  If gold was not a good store of value, a good investment, or doomed to fail in the long run then what would explain the soaring prices? I add this chart as more evidence of what I discused in the previous post. I also recommend this lecture, given by George Reisman on the idea of sound money backed by gold. 

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