Déjà vu?

by Davos Sherman Okst | May 14, 2010

Gold Prices: $267.00, $499.00, $1,340.00. Look familiar?

I know what your thinking: "Wait, gold hasn't hit $1,340.00". (Yet). These gold prices are from the early 1900's priced in Wiemar Republic Deutsche Marks.

Source: http://theburningplatform.com/blog/2010/05/13/what-comes-after-a-trillion-2/

Gold prices since the year 2000 (when I first began buying gold), show some similarities: $267.00, $499.00 and recently $1,249.00.

While there is more time between the dates and the price points today than in 1919-19221, I think it is important that the trends be compared and that the prices be followed in the near future. Gold basically went from where it is now to $2,000.00 to then doubled --- and then went to $30,000.00. I myself, with both feet firmly planted, am in the inflation camp. Given every governments massive addictions to debt and money printing I see only one outcome --- a collapse of the currencies. I'm resolute that inflation is the increasing size of the money supply. Supply and demand. Too much of something and we get a lower value for it. Money included.

I see one outcome: Global currency crisis, and I think the fuse was lit this past Monday when the IMF put together more debt for Greece's problem which was too much debt.

The IMF equation: (Too Much Debt + Even More Debt = A Fix).

A fix?!?!?

Common sense would dictate that this really means (Too Much Debt + Even More Debt = Fiat Collapse), given that "Too Much Debt" last week equated to Greece not being able to service it's debt to begin with.

Déjà vu? Or will the deflationist be correct saying "This time it's different?"

Either way I'll be watching the price of gold like I used to watch the airspeed indicator on final during reports of wind-shear. One thing is certain about gold: It is and will continue to be the barometer for a Fiat currency crisis, which for the record I myself am convinced we lit the last fuse for this past Monday.

Contact Information

Davos Sherman Okst | Bernardston, MA USA | Email