the dollar has lost 500% in the last 10 years, is devaluing as we speak

In 2000 gold was 265 dollars an ounce,
in 2010, gold is 1340 dollars an ounce,

and since gold STAYS THE SAME THROUGHOUT ALL OF HISTORY,

that means the dollar has devalued 500% in just 10 years.

It cost 265 dollars to buy an ounce of gold in 2000, and now it costs 1340 dollars to buy an ounce of gold now.

500% loss of the dollar in just 10 years!

wake up you people!

Gold just recently broke the 1300 dollar mark, and now it is already at 1347

www.goldprice.org...

reply to post by filosophia


Yes, with gold reaching an all time high it will be interesting as to what will then hedge high during the coming inflation period. Some are now looking at other commodities.

reply to post by filosophia


I get your point but that's not how it works. The value of gold can change based on several factors including supply and demand. And a currency can't lose 500% of its value.

reply to post by filosophia



Noble of you to give kudos to the only real currency in existence

Not quite sure about your correlations with the dollar. It hasn't lost 500% because the gold/USD ratio and related dynamics is not set in stone.

Gold is way bigger than that, and is part of the 'global race to debase' i.e the current shenannigans of currency devaluation going on round the world.

USD is but one part and while I might agree it is devaluing (as with virtually all currencies as we speak, as now latent inflation is rearing its head)...if you look at the USD index chart over the past 10 years...well, it hasn't lost 500%).

Hmm, I can still buy my pack of JuicyFruit for under a dollar (.59 cents) instead of $3 so unless the Free Market is selling goods for a 500% loss, I'm calling "Shenanigans" on this premise that the dollar has lost 500% in the last 10 years.

Sure, anything made with flour has skyrocketed in price in the past two years, but that is due to other outside influences (there is a thread around here somewhere on ATS about it). Sure, cigarettes have gone up 200% in the past decade but that is entirely due to over-taxation, not to inflation. Everything else has either only gone up no more than 1.1% a year (Consumer Price Index), or has dropped significantly in that time (such as the price of housing).

Gold is a reverse indicator of Consumer Confidence in the stability of our Dollar. When Consumer Confidence is high, then Gold plummets, when Consumer Confidence is low, Gold skyrockets. Consumer Confidence in the USD may have dropped 500% in the past 10 years, however, Consumer Confidence is not the only factor in determining the value of the USD. Factors such as GNP, GDP, CPI, PPP, PRI are perhaps bigger influences than Consumer Confidence.

Yeah, what fraterormus said. The US went off the gold standard in what? 1933? Gold is only an indicator. Looking at the market and current gold prices, I won't be buying gold anytime soon!

reply to post by Moonsouljah


500% seems large but if we divide the dollar by the US Deficit it doesn’t look pretty. Leaving the gold standard was our biggest mistake. The interest on the money we owe will be the biggest unpaid debt in history. I'd like to see us get out of that one without seeing hyperinflation. Bernanke knows better!

reply to post by Aggie Man


Not being rude, but it's comments like this that are reassuring for us gold bulls.

Yeah, don't worry about gold. And yeah, it's good you won't be buyng it.

It's when you everyone is agreeing on gold as the only alternative to the coming inflation, competitive global currency devaluation, and next 'thing to be in'...that questions will be asked about any sort of bubble or overvaluation.

Don't worry about the fact that most of the world don't measure or value gold by USD. That's irrelevant it would seem.

Originally posted by Moonsouljah
reply to post by filosophia

 

I get your point but that's not how it works. The value of gold can change based on several factors including supply and demand. And a currency can't lose 500% of its value.

The supply is going up because no one trusts the dollar anymore! And if stocks can increase 500 percent, then they can decrease 5 times their previous value (that's all 500 percent means). The value of the dollar WAS 200 dollars for an ounce of gold, now that dollar value is 1340 for an ounce of gold. I may not be talking in proper "Keynsian economics" but the point is gold has increased in price 5 times in just 10 years, meaning the dollar has lost that measure.

Uhh How can something loose 500% of 1? that would mean no value would be left and it would actually be devoid of any value.

While I agree that the dollar has lost strength, it has not lost 500%, a mathematical impossibility.

Originally posted by theability
Uhh How can something loose 500% of 1? that would mean no value would be left and it would actually be devoid of any value.

While I agree that the dollar has lost strength, it has not lost 500%, a mathematical impossibility.

The dollar value is not '1', what does that mean? Everything's value is in comparison with something else. 2000 dollar value was 265/ounce of gold. 2010 dollar value is 1340/ounce of gold.

1340/265 = 5. The dollar has decreased 5 times its previous value. That's 500 percent.

Please explain to me how the dollar value is '1', you are assuming that dollar means one dollar which is meaningless by itself.

reply to post by filosophia

The dollar value is not '1', what does that mean?

WHAT??? Are you kidding me????

How much does a dollar equal?????

ONE!!!! A dollar equals 100 cents, or 100% IE ONE!!!

I cannot believe you think a dollar equals more than one.

:shk: SAD!

Originally posted by filosophia

Originally posted by theability
Uhh How can something loose 500% of 1? that would mean no value would be left and it would actually be devoid of any value.

While I agree that the dollar has lost strength, it has not lost 500%, a mathematical impossibility.

The dollar value is not '1', what does that mean? Everything's value is in comparison with something else. 2000 dollar value was 265/ounce of gold. 2010 dollar value is 1340/ounce of gold.

1340/265 = 5. The dollar has decreased 5 times its previous value. That's 500 percent.

Please explain to me how the dollar value is '1', you are assuming that dollar means one dollar which is meaningless by itself.

Geesh....do people take simple mathematics anymore?

If you have something (one whole thing...a dollar for example). If I take 100% of it and you are left with nothing. I can't take 500% of it. The OP was clearly mistaken in his math. Although I disagree with the OPs assessment, let's assume it's true. What would have been accurate to say is that the dollar has devalued by 80%. 80% of $1.00 is $0.20.

Now, if the opposite were true and the value had increased in buying power, then yes, one could say the dollar's value has increased by 500%. But that's not what the OP said.

Originally posted by theability
reply to post by filosophia

 

The dollar value is not '1', what does that mean?

WHAT???

Are you kidding me????

How much does a dollar equal?????

ONE!!!! A dollar equals 100 cents, or 100% IE ONE!!!

I cannot believe you think a dollar equals more than one.

:shk: SAD!

You are comparing 1 dollar to itself. If I were to create a currency and call it "Joebucks" and say it's value is "1" Joebuck and that it is equal to 100 Joepennies, that would be the equivalent of what you are saying. A dollar is meaningless by itself, each commodity can only be valued based upon their worth alongside some other commodity, otherwise it is based solely on your own personal subjective decision on how much you like said commodity, which would not be mathematical.

reply to post by Aggie Man


Here's saying it another way:

2010 gold is 1340/ounce

2000 gold is 265/ounce

1340/265 = 5.

So it takes 5 circa 2010 dollars to equal 1 circa 2000 dollar.

Meaning the dollar was 5 times as much money 10 years ago (500 percent).

or, 265/1340 = .20

It would take 1/5 of a 2000 dollar to equal 1 2010 dollar.

No matter how you slice it, the dollar has decreased it's purchasing power alongside gold 5 times in just the last 10 years.

It doesn't make any sense to say that the dollar is equal to '1' because that does not give it any real value alongside another commodity, and it also is just not true because of inflation, the dollar value does not stay at "1", however, historically gold does come close to being its own value of "1", but even then, it alters slightly, but SLIGHTLY compared to paper currency, so slight in fact it is negligible.

For those who think that dollar's value is 1 you are assuming the dollar is constant which in fact it is not.

reply to post by filosophia

You are comparing 1 dollar to itself. If I were to create a currency and call it "Joebucks" and say it's value is "1" Joebuck and that it is equal to 100 Joepennies, that would be the equivalent of what you are saying. A dollar is meaningless by itself, each commodity can only be valued based upon their worth alongside some other commodity, otherwise it is based solely on your own personal subjective decision on how much you like said commodity, which would not be mathematical.

I do believe this kind of math was covered in elementary school. I am sorry you do not understand the math involved. Again you cannot have 500% lose of 1 dollar despite what you believe.

Have a great day in your world where every it is!

Originally posted by theability
reply to post by filosophia

 

You are comparing 1 dollar to itself. If I were to create a currency and call it "Joebucks" and say it's value is "1" Joebuck and that it is equal to 100 Joepennies, that would be the equivalent of what you are saying. A dollar is meaningless by itself, each commodity can only be valued based upon their worth alongside some other commodity, otherwise it is based solely on your own personal subjective decision on how much you like said commodity, which would not be mathematical.

I do believe this kind of math was covered in elementary school. I am sorry you do not understand the math involved. Again you cannot have 500% lose of 1 dollar despite what you believe.

Have a great day in your world where every it is!

Actually I can, since you are assuming that the value of the dollar is '1' I guess they taught mathematics in such an abstract notion that you have lost the ability to understand what this '1' means in relationship to other commodities. You assume the dollar is God because the government creates it, not realizing that the dollar value fluctuates and is not constant.

20 cents. The 2010 dollar is worth 20 cents of what it was worth 10 years ago. That's an 80 percent loss compared to 2000, so I'll change the title of this thread to an 80 percent loss instead of 500 percent, but it's still 5 times less.

Originally posted by filosophia
reply to post by Aggie Man

 

Here's saying it another way:

2010 gold is 1340/ounce

2000 gold is 265/ounce

1340/265 = 5.

So it takes 5 circa 2010 dollars to equal 1 circa 2000 dollar.

Meaning the dollar was 5 times as much money 10 years ago (500 percent).

or, 265/1340 = .20

It would take 1/5 of a 2000 dollar to equal 1 2010 dollar.

No matter how you slice it, the dollar has decreased it's purchasing power alongside gold 5 times in just the last 10 years.

It doesn't make any sense to say that the dollar is equal to '1' because that does not give it any real value alongside another commodity, and it also is just not true because of inflation, the dollar value does not stay at "1", however, historically gold does come close to being its own value of "1", but even then, it alters slightly, but SLIGHTLY compared to paper currency, so slight in fact it is negligible.

For those who think that dollar's value is 1 you are assuming the dollar is constant which in fact it is not.

Wrong.

A decrease of 100% means the final amount is zero (100% − 100% = 0%)

en.wikipedia.org...

I take it that math is not your forte?

reply to post by Aggie Man


I should have said the dollar lost 80 percent in 10 years, but the value is still 5 times as less.

False.

Your OP assumes that the only thing which drives gold up is inflation of the money supply and deflation of it's purchasing power. This isn't the case.

I've seen this fallacy made a lot lately. People look at these systems based on the fundamentals alone. I got news for you guys : THE SYSTEM ISN'T RATIONAL. At least, not in the simplistic terms you guys are tying to make it out to be.

There's something called supply/demand, and speculation that you're not taking into account.