Gold seems to be very comfortable above $3000/oz. It only took 213 days to go from $2500 to $3000. To better understand this, we need to look a it from another perspective: it’s not gold going up in price, is Fiat money being devaluated, or debased. If you look at the chart below, over the last 25 years, compounded inflation would tell us money has being devalued around 88%. That’s how much our purchasing power should have decreased if CPI was a fair measure of the cost of life. But governments smooth and adjust CPI to have a manageable indicator, less volatile and also, less accurate. If we use other measures, less manipulated, you can get a debasement of almost 400% in the same period, as you can see in the chart below. How much has gold gone up over the last 25 years? 980%. One way to look at this is, you need 10 times more fiat money today to buy the same things you bought 25 years ago. The S&P500 has gone up in the same period 278%, 3X the cpi derived cost of life, 70% of the less adjusted measure of the cost of life, and 30% of the movement of gold.
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