Thursday, June 20, 2013

20/6/2013: Real Price of Gold (and fiat currency by implication)

Price of Gold since 1791 in constant 2012 USD:

Click on chart to open

And a data set for gold prices since 1257:

You can't really make a data set for any fiat currency since 1257, cause none really exist anymore... though you can make sets of numismatic values of some. So risk-adjusted value of gold is X>0 over any time horizon. Risk-adjusted value of any fiat currency over much of the historical time horizon is X~0. That is, of course, if unlike Keynes you do believe that the long-run matters...

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