Investment advisors like to talk about about inflation these days in terms of raw money supply/purchasing power. But there's more to this.
The uncertainty inflicted on an economy by loose currency policies limits investors' ability to forecast and, thus, take risk. This subtle, hard-to-measure market friction decreases the overall rate of wealth production.
Whether we realize it or not, there is tremendous value to a society in having a steady, reliable scale by which we price things. Currency policies by the US are destroying the once-reliable dollar scale in a misguided attempt to increase GDP through cheaper exports.
In good market fashion, demand for one of the few trustworthy scales left - gold - is rising. For this reason, gold is worth more today than merely as a means to protect wealth. It is a speculative play on the value of a pricing model that the global market can trust. For this reason, I think gold's real value will continue to increase far faster than the buoyancy money printing is already giving it.
Exchange your paper for real money while the getting is still good!
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