The purchasing power of gold is truly spectacular when chaos is about you - it actually packs an enormous punch. Now I can hear you all say … the last month, gold has been down almost 15% in dollar terms, this is no place to put my savings.

My reply would be yes, you are correct, but the thing you are missing is that gold is able to buy so much more in times like this. Don’t believe me, but believe this. In ~36 years, you have never been able to buy cheaper oil than now. In 2008 (GFC time) you could buy about 1/5 barrel of oil with 1 gram of gold, the long term average is approx 2 grams per barrel - TODAY IT IS A MASSIVE - 2 BARRELS PER GRAM.

The problem that most people make is giving it a dollar, pound or euro value - try change the way you are wired to think about how much or many of an item it will buy. Also use it to value assets, you will get a very good idea about how cheap or expensive other assets are.

In todays climate when central banks and banks can create currency so easily (in fact we have just gone from fractional reserve banking to no-reserve banking curtesy of the virus). As a result of this money creation, it is very difficult to value assets, and if you are saving for retirement, you want to ensure you are able to value investments. Using fiat to value assets, really isn’t the way to do it - it is actually the trap.

Gold has consistently been the best asset to protect your purchasing power - I sure hope you are enjoying The Golden Constant: The English and American Experience 1560-2007 by Roy W. Jastram (Author), Jill Leyland (Editor)