Articles Involving Inflation/Gold

Discussion of the Gold portion of the Permanent Portfolio

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Greg
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Articles Involving Inflation/Gold

Post by Greg »

Hello all. I created this thread for those that find interesting articles regarding inflation or gold. I found another thread like this regarding academic and fed produced articles created by Pkg Man but thought a database on regular authors might be interesting too.

Here's the academic thread:

http://gyroscopicinvesting.com/forum/ht ... ic.php?t=7

And here's the article you might enjoy. It speaks about inflation/deflation happening at the same time and what the does to people and how the media seems to only look at one or the other in isolation. One of the author's suggestions by the end of the article involves having hard assets such as gold/silver and that he believes having silver coins would be useful for trading if paper currency drops to 0.

Enjoy.

http://etfdailynews.com/2012/06/10/the- ... s-iau-agq/
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Re: Articles Involving Inflation/Gold

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Greg
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Re: Articles Involving Inflation/Gold

Post by Greg »

Interesting link. I do wonder though are these myths-bustings supposed to be from a pro or anti-gold stance? It seems like they would be discouraging it from what I was reading there but perhaps I'm reading too much into it. Regardless, I just purchased a few gold coins, ideally once I get to a hundred I'll get a 1up.
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Re: Articles Involving Inflation/Gold

Post by MediumTex »

I would say that gold is a terribly misunderstood asset.

Picture a scale with a pile of financial abstractions created by the human mind on one side and a few gold bars on the other.  The scale is constantly tipping from one side to the other as the weight and quality of financial abstractions fluctuates along with perceptions of the value of gold.

In recent years, the quality of financial abstractions has been in a secular decline, and it has been very good for gold. 

I would say that inflation is a symptom of the process I am describing above, but inflation doesn't really get at any of the root causes for the imbalance that may exist at a particular point in time between the worth of financial abstractions when compared to the value of gold.
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