Sunday, December 04, 2005

The popular financial press knows nothing about the time value of money



Gold hits over $505 to 23-year high -
(Newshttp://news.yahoo.com/s/nm/20051202/bs_nm/markets_precious_dc)

Adjusted for decline of the dollar and the rise in housing and education prices since the early 1980s, gold reaching $500 the other day merely means it's recovered maybe 20% its former buying power at its high. Probably a lot lower because gold bullion doesn't pay dividends and there can be storage and insurance costs.

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