The current debt-based fiat monetary system creates an illusion of wealth expansion.
For example look at this 100-year price chart of the Dow Jones Industrial Average.
Now, let’s look at the same time period using gold as the measure of value instead of using dollars.
All of this demonstrates an important truth: Investors should care about maximizing their wealth and it’s difficult to measure wealth with a poor fiat standard like the dollar.
Wise words from the book of Proverbs notes the importance of an honest standard.
A false balance is an abomination to the Lord: but a just weight is his delight.” Proverbs 11:1
- With gold, the real value of assets may be seen and investments can be measured by their true productivity and not their illusion growth in fiat dollars. This truth cannot be understated.
- Before making any serious financial purchases or sales, I recommend checking an asset’s gold price history.
- There are also a number of charting tools that allow users to create historical price graphs
It’s interesting to note how the US real estate market was in a dollar bubble during the early 2000s until about 2006 when prices softened. In gold terms, there wasn’t really a bubble, the market was relatively flat during the early 2000s with a sharp decline beginning in 2005-06.denominated in gold.
Original Source: https://schiffgold.com/commentaries/gold-is-the-best-standard-of-value/