Did You Miss Gold’s Major Milestone?
-Contributing Editor Doug Hornig
My good friend Doug points out the significance of gold’s new all-time high price, one you may not have caught. He also shares the price he first bought his first few ounces of gold…
In my previous article, I posed the question as to whether it was too late to buy gold. That was back on April Fool’s Day. Gold was then sitting at $3125/oz., an all-time high in nominal terms. As I write now, on the 21st, the price is $3410/oz.
And that’s significant.
Not because it’s risen over 9% in less than three weeks, or has made numerous all-time highs this year, although that’s pretty remarkable. It’s because…
- Gold has blown past its all-time price high in inflation-adjusted terms (IAP). For the first time.
To fully appreciate what that means requires a quick dip into history.
Valuing Gold
91 years ago, gold was a monetary metal, meaning that it was money used in everyday trade. Paper dollars were gold-backed. Anyone could walk into a bank and swap them for gold, at a price fixed by the federal government, $19.75/oz.
Then Franklin Roosevelt happened. The economy was in the early throes
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