Paul Kedrosky's Infectious Greed
Finance & The Money Culture
From Reuters as the gold frenzy (literally) hits new highs, this high-gloss take on the precious metal’s recent history:
I'd like to see percentage moves of the y-axis, not dollars
Yeah, it's best seen as figurative. And you don't want percentages –you want a log y-axis.
Granted. In the end, to me, the only way to know if gold is over/under valued is to compare what it could buy historically with what it can buy now. Unfortunately, few items are comparable across 100 or 1000 years, but I suggest the following: hours of unskilled peasant/farmer/construction work, sq.ft. of land in central area of large city, farmland, barrels of good wine, beer, livestock, tomatoes…, copper, etc.
If only there were some more enduring financial instrument whose value didn't undergo such wild inflationary swings…
if the riots had continued in London, one would have been unable to access the safe-deposit box holding one's gold and nowhere would have been open to exchange it.. that's assuming the rioters would have allowed you to pass through them without their taking everything..
just a thought
… as opposed to ten pound notes, or ipads, or netflix shares?
I would love to see a chart for the same time frame comparing the price of a cow to the price of gold. No one can argue that the "value" of a cow in 1900 vs 2010 is much different!
Paul Kedrosky‘s Infectious Greed
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