jessescrossroadscafe.blogspot.com / By Jesse / December 4, 2012
“…the broken wall, the burning roof and tower, and Agamemnon dead.”
W. B. Yeats, Leda and the Swan
Hugo Salinas-Price reminds us of something important in a striking ‘heart of the matter’ essay.
Gold is the standard of monetary value, because of its unique characteristics which are founded in nature, and are contingent on no other counterparty.
And this is why central bankers are so interested in the relative value of their paper and gold, even if they choose to feign indifference.
The ratio of increase of gold bullion is relatively steady at 1.75% increase per year, also known as the ‘stock-to-flow’ ratio. This is discussed in more detail by Ronald-Peter Stöferle, Analyst at Erste Bank, and James Turk, in the video below.
Gold and silver are the benchmarks, the ‘north star’ if you will of monetary exchange fluctuations throughout history. It is how one finds their way through the troubled waters of currency devaluations, war, and temporal customs and regimes.
Empires rise and fall, and currencies come and go; gold and silver endure.