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<p>[QUOTE=&quot;-jeffB, post: 1248625, member: 27832&quot;]Currencies may be &quot;pegged against each other&quot;, but the important issue is <i>what they can buy</i>. I don&#039;t have any idea what relative changes were happening among the dollar, the pound, the yen and the zloty during 1979-1980. I just know that, while (dollar-denominated) prices of silver and gold spiked violently and then crashed, prices of groceries, clothes, and vehicles climbed MUCH more slowly. So did wages.</p><p><br /></p><p>I would argue that, during that period, the dollar steadily lost purchasing power, and gold and silver spiked followed by a crash.</p><p><br /></p><p>If you argue that PMs are the proper measure of value, you&#039;re saying that both wages and consumer prices <i>plummeted</i> by something like 80% during late 1979/early 1980, then soared back to their previous levels. That doesn&#039;t seem an accurate reflection of what life was like at the time.</p><p><br /></p><p>And if you argue that silver <i>and</i> gold are the proper measures of value, even while their relative value fluctuates by a factor of three or more -- well, I&#039;m not sure what you mean.[/QUOTE]</p><p><br /></p>

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