Monday 5 September 2011
Posted by
Admin Hijrah Dinar
The golden constant
Since the 14th Century, gold’s purchasing power has maintained a broadly
constant level.To put this in practical terms, an ounce of gold has repeatedly
bought a mid-range outfit of clothing.This was true in the fourteenth century,
when an ounce of gold was worth £1.25 to £1.33;it was true in the late 18th
century and it remained true at the beginning of this century (2000 to 2008),
when an ounce of gold averaged £269 or $472. Even the exchange rate
between gold and commoditieshas been relatively constant over the centuries.
On the other hand, the US dollar that bought 14.5 loaves of bread in 1900 buys
only 3/4 of a loaf today.While inflation and other forces have ravaged the value
of the world’s currencies, gold has emerged with its capacity for wealth
preservation firmly intact. Being no-one’s liability, gold exhibits the same wealth
preserving qualities in the face of financial turmoil, earning a reputation as a
crisis hedge in addition to its credentials as an inflation hedge.
only 3/4 of a loaf today.While inflation and other forces have ravaged the value
of the world’s currencies, gold has emerged with its capacity for wealth
preservation firmly intact. Being no-one’s liability, gold exhibits the same wealth
preserving qualities in the face of financial turmoil, earning a reputation as a
crisis hedge in addition to its credentials as an inflation hedge.
The Golden Constant: The English and American Experience 1560-2007
by Roy W Jastram with updated material by Jill Leyland.
Published 2009 by Edward Elgar Publishing Ltd
(www.e-elgar.com), hardback, 368 pages, ISBN: 978 1 84720 261 1.
by Roy W Jastram with updated material by Jill Leyland.
Published 2009 by Edward Elgar Publishing Ltd
(www.e-elgar.com), hardback, 368 pages, ISBN: 978 1 84720 261 1.
Category:
Gold Saving / Investment
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