Don’t listen to those who get it wrong

Paul Theron links to an interview he did for the M&G where he discusses gold.  He has been consistently wrong on gold for years now. In late 2009 he was calling for gold to be below $800/oz soon. He is off by 100% to date.

In the interview all these guys focus on the wrong things. Gold isn’t an investment, as they describe it. It is money, plain and simple.  Bank notes we use as media of exchange today were linked to gold before 1971.  Since the link has been cut, central banks have printed bank notes at will.  Rand money supply is up over 40,000% since the 1960s. The data is available on the SARB’s website, check it for yourself.  When bank notes were still a claim on gold, there were restrictions to how many bank notes could be printed. Since the link’s been cut, there’s hasn’t. No surprise that central banks have printed and printed. It is not the price of gold that has increased as this happened but rather the value of paper monies being falling relative to gold, that has increased the price of gold in paper money terms. You will find that the gold price is more or less unchanged to the price of brent crude of designer clothing over the past few decades.

Why is this so hard for these guys to understand? They don’t even mention it.  Amazing how you can be so clueless.

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