If you bought 1 ounce of gold in Feb/2000 for $292.50 and held onto it, today you would have $1,347.16 value

If you held onto your $292.50 of Federal Reserve Notes, today you would have $292.50.

But the important point is the purchasing power of these $. According to the Gov’t. Bureau of Labor Statistics Consumer Price Index Calculator (a tool to show you just how badly the Fed has destroyed the purchasing power, through inflation), the $292.50 of Feb/2000 only has a purchasing power now of about $199.74. This is a 31.7% decline in the purchasing power of your money thanks to inflation. To be fair, the $1347.16 adjusted for the inflation has a purchasing power of $918.59 relative to Feb/2000. But the point remains that gold was a much better method of wealth preservation than simply stuffing the mattress.

This quick exercise gives the Gov’t the benefit of the doubt, as I’m using a CPI calculator with just the inflation they are willing to admit to, which is lower than the actual inflation rate. The metrics used to calculate the inflation have been subverted decades ago to fix the rate so as to not show the true inflation rate which is around 8%. This system punishes prudent savers, who are forced to shift out of an ever-failing dollar or face a shrinking purchasing power.

https:// www.bls.gov/data/inflation_calculator.htm

http:// www.shadowstats.com/alternate_data/inflation-charts

>>786950

This has not taken into account the manipulated price of gold. According to the US Debt Clock, there is a Paper to Physical ratio of 75.98:1. This means that for every 1 ounce of physical gold, there is roughly 76 stock paper ounces. These gold stocks are used similarly to Federal Reserve Notes, in that they provide a fractional reserve mechanism of price manipulation. By increasing the amount of paper gold (increasing the supply), the price of gold can be pushed lower. Silver shows a paper to physical ratio of 178.91:1.