You are assuming that gold prices would continue to be market driven. Keep in mind that for years and years the price of gold was fixed at $35 per ounce. Fixed as in in never varied. That can happen again.
Anything can happen and that is smart to remember so one doesn’t put all their eggs in one basket.
Thanks for reminding.
35 dollars.
Anyone with great foresight left their children or grandchildren a FORTUNE in gold.
” Keep in mind that for years and years the price of gold was fixed at $35 per ounce. Fixed as in in never varied. “
Actually it started to vary around 1960. There was a dual gold market, the official gov’t to gov’t one valued at $35 and a free market one trading higher.
This was the result of using the dollar as the world’s reserve currency, and the resulting Triffin Dilemma when the number of dollars being held outside the country exceeded our gold supply.
This was the pressure that ultimately led Nixon to scrap the Bretton Woods gold standard. Maybe we could have kept the gold standard if Nixon instead had ended the dollar’s role as world reserve currency.