The board is full of posters trying to determine where the price of gold and/or siver is going.

Every so often, someone publishes a graph showing how gold has performed over so many years, so many months etc. Same with Silver.

Compared to what? What forms the baseline? Is it the U.S.$? Is it the euro? Is it the Yuan?

Guess that is why I can never understand TA. Too many variables.

Well, in my little world, such as it is, gold forms the baseline and it is always a straight line. Same with Silver (except when I pay my bills and then I have to try and budget with FIAT, as best I can).

Does Silver vary in relation to Gold?

Not in my world.

Why?

Because the weight of gold and silver never changes.

Try this.

Place one ounce of gold (or silver) on your desk and the equivalent amount in (you pick the FIAT) next to it.

Do this every day and see which one fluctuates the most.

And then ask yourself this question; How can I budget with something that fluctuates so much in such a short time?

Look at the little cartoon on Ed Steer's page today. What would happen if every store displayed a similar advertisement for its goods and/or services?

My guess is the pricing would stay the same.

No inflation!

Now try and understand this.

Back in 2001, the U.S. budget was under $500 billion.

Today, the U.S. budget is approx. $2.5 Trillion.

In 2001, the price of gold (in U.S. $'s) was approx. $260/ounce.

Today it is approx. $1,500.00/ounce.

Ironically, in each case, in gold, that works out to approx 1.6 billion ounces.

So, what has really changed?

Its the distribution of the FIAT!!!

Good Luck to all!