Why, because it's disadvantageous to those who are encouraging people to buy gold? It's just as real as judging gold by the weak currency that preceded it.
Look, it's a safe haven, I don't dispute that. I own precious metals myself, but I'm not going to get so caught up in the matter that I lose my *** when it inevitably starts back down again, as it has again and again. It's bought during times of economic upheaval and sold in times of prosperity. That's the driver of the currency strengthening as well. It does not serve any argument about a looming hyperinflation.
We have not even come anywhere near hyperinflation, ever, in the history of this country, unless you want to delve into the very uncertain currencies present during the Revolution (have an ancestor whose Rev. pension application details his trials when his pay in Continental money had depreciated to worthlessness) or during the latter stages of the Civil War with Confederate money doing likewise (ancestors who lived through and endured that as well).
If you want to buy and hold gold by all means do so. I've told you that it's not an historically good thing to buy and hold long term, and even your own graphs show you that. But, it's your money. Have at it. Me, I'll hold it until the trend is clearly downward, I bought in early enough to afford that luxury and still have a very nice return. Certainly didn't get in at $250 or whatever as so many here brag, more like twice that in the wake of 9/11. It's been good to me but it's delusion to think it always will be.
Not at all. That time period actually illustrates the volatility of the US dollar. It is the dollars volatility that corrupts the price of gold in dollars during that time period. But if you want to use a time period where the dollar doubled in value and then dropped half that value again all within 5 to 6 years, fine. But some might think you are illustrating the authors point. Gold rose in dollars during the Jimmy Carter years. Seems like a reasonable response to me. Then it fell and slightly recovered when the dollar went on its hyper roller coaster ride. Then from 1988 to 2000, gold was fairly stable. Starting rising again in dollars after the dot com crash, 911 and the War in Iraq and Af/Pak. Now we are setting absolute high gold records after the Financial Sector collapse in 2008. Followed of course by the Mortgage Crisis and now the potential currency and trade wars. All seems like reasonable behavior to me.