Tuesday, April 16, 2013

Due to the Recent Gold Crash, the Dollar Has Now Only Lost 97.44% of It's Value Since 1970

Here is a chart of the value of a dollar in terms of gold, with 1970=100:

Now, I am not saying gold is necessarily cheap here (I don't really know how you would value gold) or that you should buy.  Gold had been overbought for a while and there are funds that are still up to their necks in the stuff that might have to sell (like John Paulson's funds) so there could be some downside.  I just think there has been a bit too much "goldenfreude" and people should have some perspective.

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