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TheLonger Term Implications of Basel III (January 2013) - Gold's Triumphant Return?
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<p>[QUOTE="InfleXion, post: 1605781, member: 29012"]I think a more accurate statement would be that the value of gold smooths out over time and generally holds its value with the exception of short term fluctuations. We are in unprecedented territory with global debt based fiat money, record debt levels, speed of light trading, infinite rehypothecation in London, quadrillions in derivatives and shadow banking. I consider 10 years to be very short term as compared to thousands of years of relative consistency. Of course, relative is a relative term, but over such a long time span I am not aware of anything else that has held its value better than precious metals. I agree that it is illogical to say the value of anything never changes. It's a function of the market psychology, but gold is the best barometer for currency strength we've got.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1605781, member: 29012"]I think a more accurate statement would be that the value of gold smooths out over time and generally holds its value with the exception of short term fluctuations. We are in unprecedented territory with global debt based fiat money, record debt levels, speed of light trading, infinite rehypothecation in London, quadrillions in derivatives and shadow banking. I consider 10 years to be very short term as compared to thousands of years of relative consistency. Of course, relative is a relative term, but over such a long time span I am not aware of anything else that has held its value better than precious metals. I agree that it is illogical to say the value of anything never changes. It's a function of the market psychology, but gold is the best barometer for currency strength we've got.[/QUOTE]
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