I have a lot of respect for Paul van Eeden of Cranberry Capital, especially since he was wise enough and gutsy enough to bail out of most, if not all, resource stocks early this year. What a call.
Paul has recently been called upon quite frequently to laud his research on the “fair” price of gold as gold is considered money. And last week when gold was priced in U.S. Dollars almost exactly at his “fair price” of $760 an ounce, Paul was doing even more interviews.
Paul has done some phenomenal research that I only partly understand and I don’t want to be seen as criticizing.
Perhaps I’m just a bit daft, and that’s why I don’t get it. But here is my question:
How can you compare any fiat currency to a non-fiat currency, let alone, the ultimate currency – gold?
There are many reasons, many of which exhibited themselves today in gold and silver’s record price jumps, why people want to own gold (and silver to a lesser degree) that would never be true with regard to any fiat currency, especially one like the U.S. Dollar.
I say that about the dollar, world reserve currency (for a while anyway) not withstanding, quite easily in light of the dollar’s almost complete destruction of purchasing power from the invention of the U.S. Dollar’s alleged protector – the Federal Reserve – until today.
Add to that the carnage in purchasing power the dollar has suffered in less than one decade since the beginning of this current century.
Gold is gold, the U.S. Dollar isn’t. Was once, not now, likely never again.
