Posted on 07/18/2015 12:50:32 PM PDT by JimSEA
It's still months away, but amid all the turmoil on financial markets and chaos in the global economy, you can't help but look forward to this year's Oktoberfest.
Incrementum's ninth annual In Gold We Trust report analyzes gold primarily as a monetary asset and not as a commodity like say hops or barley.
The Liechtenstein-based asset managers conclude that "the competitive position of gold relative to paper money and other asset classes has improved considerably in recent months" and have 140 pages of charts and tables to prove it.
Many comparisons from everyday life show that gold is currently not valued at an excessively high level The Economist has its Big Mac index to rate the over- or undervaluation of currencies, but you have to agree with Incrementum that when looking at a suitable comparison to gold, beer is much more appropriate:
"Many comparisons from everyday life show that gold is currently not valued at an excessively high level. While a “Mass” beer (one liter) at the Munich Oktoberfest in 1950 still cost a converted EUR 0.82, the price in 2014 stood between EUR 9.70 – EUR 10.10 (average EUR 9,90).
I found it interesting that only ONE of the common mining products is at a higher price than it was a year ago:
Uranium is up.
Not sure what that means, but I don't think it is a good sign.
Mining.com, like Geology.com is a good resource for industry news and analysis.
Yeah, I used to even subscribe (I used to be in the business before I ‘went Galt”.) Don’t follow it much anymore though beyond checking Au and Ag prices.
I spent my life in mining although half if it was behind an ignorant stick and the other half in supervision. I still keep up some although everybody I knew is either retired or dead.
I ran a VERY small exploration & ‘pillar robbing’ company. High risk, high value stuff. Lotsa time underground.
Sounds interesting. High risk indeed.
I had a good time, saw interesting places, and occasionally even made a few bucks.
I wonder what Edson Gould would think?
I’m no expert on his ideas but I guess you could add beer to economic fundamentals and monetary conditions when investing! It’s something I could understand at least.
It is probably a better measure than the bespoke suit analogy I hear so often.
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