Is There Any Correlation Between the U.S. Dollar and Gold?


By Patrick   Follow   Wed, 14 Nov 2012, 5:52pm   901 views   12 comments
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http://www.oftwominds.com/blognov12/USD-correlations11-12.html

The USD may gain relative to other currencies, but since all fiat currencies are declining against gold, it doesn’t mean that the USD is actually gaining value; in fact, all paper money is losing value.

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  1. C Boy


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    1   6:24am Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Can't pay my bills in gold.

  2. ELC


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    2   4:25pm Thu 15 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Melmakian says

    the dollar is being purposely debased

    Gold is being pushed by every low life huckster on every sucker who wants to believe the sky is falling while at the same time the dollar is being debased by unsound Government policy. That's why gold is not worth anywhere near what it's being sold for.

    It's the same with real estate. All it will take is a change in Government policy and gold and RE will drop like a brick. Just as the elite failed to buy this election and fool enough of the ignorant, eventually normal intelligent people will prevail.

  3. The Professor


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    3   5:50pm Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    If "they" keep creating more and more money it is inevitable that the money will eventually be worth little more than whatever curio value a collector is willing to give for it.

    Gold was outlawed and confiscated in this country at the beginning of the New Deal. That was the last time the dollar had any correlation to gold.

    Gold is pretty and shiny. It doesn't tarnish. It is an excellent conductor of electricity. It is hefty. It can be stretched incredibly thin.

    Currency is always debased. Metal will always be valuable. Gold, silver, nickel, copper, even zinc and steel will always have worth.

    When the printing stops the one with the most paper loses.

  4. pkennedy


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    4   6:01pm Thu 15 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    You can't pay $23.45 with gold.

    You can't easily figure out how much gold is worth at the time of a transaction.

    You can't easily identify fraudulent pieces of gold, while paper bills have far more security features that the average person can use.

    It doesn't matter what the currency is worth, because all you care about is how much you can buy with it at the store down the street. Most people are living pay check to pay check, so gold would do them absolutely nothing. They spend what they make at the time they make it.

    Gold is only useful if you have a decent amount of money. And clearly those with a decent amount of money aren't buying up gold.

  5. The Professor


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    5   10:06pm Thu 15 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected  

    pkennedy says

    You can't pay $23.45 with gold.

    That is why you have silver.

  6. Peter P


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    6   10:18pm Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    That is why you have silver.

    Yellow brick road?

  7. uomo_senza_nome


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    7   2:33am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    When the printing stops the one with the most paper loses.

    When printing stops, currency is not debased anymore right. One with the most paper wins?

  8. uomo_senza_nome


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    8   2:37am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    I highly recommend Charles Hugh Smith to consider this blog article by Prof. Krugman on gold.

    Gold is anti-correlated to real interest rates, at least for over 200 years of empirical data. This fact solves the Gibson paradox, the work of Barsky and Summers (yes, the same Lawrence Summers who was instrumental in deregulating the derivatives market).

  9. ELC


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    9   3:54am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    When the printing stops the one with the most paper loses.

    What are you talking about? When there's less printing, money is worth more.

  10. ELC


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    10   3:59am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    pkennedy says

    Gold is only useful

    Gold is for posers.

  11. The Professor


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    11   10:07am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    uomo_senza_nome says

    The Professor says

    When the printing stops the one with the most paper loses.

    When printing stops, currency is not debased anymore right. One with the most paper wins?

    ELC says

    The Professor says

    When the printing stops the one with the most paper loses.

    What are you talking about? When there's less printing, money is worth more.

    The printing stops after they make the $10,000,000 dollar bill.

  12. dublin hillz


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    12   10:33am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Conservatives were busy creating doom and gloom scenarious for the last 4 years in order to pump the value of their gold holdings. That much is obvious. Suckas will end up as bagholders, business as usual.

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