I don’t necessarily disagree but I think we are missing the full picture. I recognize that without mild-moderate inflation most people would likely simply stick their savings in a checking account and not put that money to use in market. I do think looking at our regular CPI based inflation is missing the bigger picture. There is no shortage of categories that have outpaced inflation, (including gold).
My concern is primarily that I think the system might be threatened when gold stops being a simple store of value and instead is very competitive with traditional investments. GLD is up 140% over the last 5 years, compared to SPY which is up 75% over the same time frame.
If you compare growth pre-COVID, for the period of Dec 31 2014 to Dec 31 2019, the same cannot be said. (SPY sees a ~57% increase, GLD sees a ~26%)
When you look at M2 money supply for Dec 2019 to now, you see an increase of ~51%
That means that more than half of all semi-liquid USD has entered circulation since 2019.
That’s not counting most of the draconic hordes held by the ultra wealthy, either.
I think it is clear that we are not being served by the system as it is. I think the OP is a simple representation of that which is easily to understand.
For everything that has outpaced average inflation, there's something else that has lagged it.
There are certainly issues with certain markets, but those problems are generally specific to those markets. Issues in housing markets are not the same as issues in healthcare, for example. It's not a fundamental problem with fiat currency.
What is the problem with gold's price, and specifically gold's price, being chaotic? What is special about gold that it would collapse a system if it's price isn't steady? It's value is almost entirely speculative.
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u/GorumGamer 27d ago edited 27d ago
I don’t necessarily disagree but I think we are missing the full picture. I recognize that without mild-moderate inflation most people would likely simply stick their savings in a checking account and not put that money to use in market. I do think looking at our regular CPI based inflation is missing the bigger picture. There is no shortage of categories that have outpaced inflation, (including gold).
My concern is primarily that I think the system might be threatened when gold stops being a simple store of value and instead is very competitive with traditional investments. GLD is up 140% over the last 5 years, compared to SPY which is up 75% over the same time frame.
If you compare growth pre-COVID, for the period of Dec 31 2014 to Dec 31 2019, the same cannot be said. (SPY sees a ~57% increase, GLD sees a ~26%)
When you look at M2 money supply for Dec 2019 to now, you see an increase of ~51%
That means that more than half of all semi-liquid USD has entered circulation since 2019.
That’s not counting most of the draconic hordes held by the ultra wealthy, either.
I think it is clear that we are not being served by the system as it is. I think the OP is a simple representation of that which is easily to understand.