Detlev Schlichter: Is gold in a bubble?

This coin (a Daric) is approximately two and a half thousand years old, and was issued by Darius the Great, of Persia. It weighs about a quarter of an ounce (about $5 gold dollars or £1 gold pound). This Daric has held it’s value for more than two millennia, and even if melted down to simply provide its 98% purity level of gold, it would be worth about £265 paper fiat pounds. I would say that this means it has held its value for all of that prodigious length of time. I wonder what the current British paper-money pound will be worth, in terms of gold, in 2,500 years, given that it is already 1/265th (or 0.38%) of the value it held in 1931, a mere 81 years ago? One suspects not much.

On the day on which gold mysteriously bounced over $1,600 dollars (no doubt to crash back down to $275 dollars, by next Tuesday), Detlev Schlichter asks a very rhetorical question.


About Andy Duncan

An Austrian Internet Vigilante trying to live Outside the Asylum
This entry was posted in Goldbugs and tagged , . Bookmark the permalink.

Leave a civil and intelligent reply - Comments will be moderated

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s