Illuminating Chart: Performance of the S&P priced in gold over the last 6 years

SP priced in gold

15 comments
Scott Smith
Scott Smith

im sure you have seen the meme about the minimum wage in 1960 it was a buck and a quarter, 5 silver quarters, the value of those same 5 silver quarters today is like 25 bucks,, the costs of things did not go up,,,,,

Scott Smith
Scott Smith

Julio buying gold turns pieces of paper into something tangible , like the items you sugest, once you have those, but still have paper gold would be a places to keep that wealth?

jxkchicago
jxkchicago

Gold and silver is money that retains its purchasing power, currency is not money and loses purchasing power over time. With currency wars heating up, expect $ to lose their punch rapidly.

Julio Altamiranda Bayard
Julio Altamiranda Bayard

my point is you will never get your value back? Whats the point in buying something you cant sell? Or eat? Or drink? Etc...

Against Crony Capitalism
Against Crony Capitalism

Of course you can SELL gold at less than spot. Try BUYING gold from that shop at less than spot. If you can tell me where to go I'll be there soon.

Julio Altamiranda Bayard
Julio Altamiranda Bayard

To crony capitalism, maybe i misuderstood your intention. There are a lot of similar groups on facebook as well as advertisements all over the wrb advocating gold as an investment and a store of value and an overall alternative to bonds stocks and cash in savings accounts for the average "peasant" If that was not your point then what was it? Central banks also hold billions in treasury bills... Which, like Joe said, back the dollar because they are useful. Gold is accepted for less than full price at shady pawn shops and coin stores nationwide in exchange for dollars which, its safe to say are excepted anywhere at full value and maybe even above that in some countries. Maybe I missed the point. But I'd take a million bucks worth of the SPY index over the same amount in gold anyday. What happens tomorrow is irrelevant, this is America remember?

Joe Boyum
Joe Boyum

anything can appreciate and depreciate relative to another. Just a matter of changing the X/Y equation. Gold functions well as a store of value because it is relatively rare and does not oxidize. Beyond that it is a fairly good blocker of radiation. It has no intrinsic value in and of itself. We would actually be better off using U-238 as a backing for our currency. More difficult to obtain, fewer industrial uses (but a bunch of military ones), and its price cannot be manipulated as easily.

Against Crony Capitalism
Against Crony Capitalism

Joe it is the closest thing to a constant the world has ever known. Dollars (and other things) depreciate or appreciate relative to gold, not the other way around.

Joe Boyum
Joe Boyum

gold is not a constant, by ANY measure. It is routinely stockpiled by countries that mine it. Mercantilism by any other name.

Joe Boyum
Joe Boyum

unless you are an adherent of the real bills doctrine. which I am. Mike Sproul was my price theory instructor and his explanation of the real bills doctrine and his critique of the quantity theory of money is bang on. And it is supported by the fact that we are not seeing any real growth despite the fact interst rates are rock bottom.

Against Crony Capitalism
Against Crony Capitalism

http://pricedingold.com/sp-500/ Per your request. Think like a peasant remain a peasant. - No one is advising anyone to buy gold. But gold is the constant by which paper assets should be measured. There is a reason central banks continue to accumulate gold. ---Gold is not an "investment." One can use it that way but it generally speaking is not the best thing to hold and then sell for paper money. Gold stocks at times. Futures are fun (or can be.) But if one buys gold with the idea that one will turn around and turn it into more paper than one bought the gold for then one misses the point of gold altogether. --- If gold goes down in price then overall that's probably good- it means central banks might be getting their act together. One should always own paper. But there is a reason why the kings own gold too.

Julio Altamiranda Bayard
Julio Altamiranda Bayard

This is the stupidest chart ever. Show me the last year? Show us the past 40 years? The recession is over, just look at that last little bit there. Anyone buying gold is in for a serious disappointment. We wont get inflation until unemployment drops a ton, how about you pull up that chart? America.. go buy stocks, of the bailed out companies that are getting rich off of your tax dollars. If you cant beat them, join them! Look at BAC and AIG ticker symbols performance in the past 2 years. Better than your savings account no?

Joe Boyum
Joe Boyum

Ought to have used US treasuries, because that is what backs the dollar.