By: John Fisher
These three images, although slightly dated, illustrate that gold is nowhere near being in a speculative bubble:
All Things Considered – John’s Commentary:
The numbers demonstrate that the average individual investor has not participated in the bull market for gold. While the media reports the latest moves in the daily price of gold, most individuals have been sitting on the sidelines.
Action to take: On an inflation adjusted basis, gold is only between 20 to 60 percent of its former all-time high (depending on whom you trust to do the counting). Gold is still very cheap! Continue to accumulate.
What to buy: I have come across several European coins that sell for far less than their US and Canadian equivalents. I personally own a significant quantity. Please call for details.
Quote of the day: “When the international monetary system was linked to gold, the latter managed the interdependence of the currency system, established an anchor for fixed exchange rates and stabilized inflation. When the gold standard broke down, these valuable functions were no longer performed and the world moved into a regime of permanent inflation.
What will be the character of the international monetary system in the next century and how will gold intersect with it? This subject may strike modern audiences as a strange topic, but back in the 1960s, when people were deliberating about the future of the international monetary system, gold figured importantly in the discussions.
Even today, the importance of gold in the international monetary system is reflected in the fact that it is today the only commodity held as reserve by the monetary authorities, and it constitutes the largest component after dollars in the total reserves of the international monetary system.”
– Robert A. Mundell, Nobel Laureate for Economics, 1999
