Gold and inflation. Not correlated.

Fact #1:

Gold went from $105 in 1976 to $850 in January, 1980.
Consumer prices increased by about 28%.

Fact #2:
Gold went from $850 in 1980 to $256 in 2001.
Consumer prices more than doubled.

Fact #3:
Gold went from $256 in 2001 to $1,011 in March, 2008.
Consumer prices went up about 20%.

Gold and inflation are not correlated.

Gold is not a hedge for inflation.

Gold is sound money.  But people are irrational, and they buy with irrational exuberance and sell with fear.  Be opportunistic.  Buy when it is low.  Don’t sell.  Let your heirs make an exit strategy.

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