As you know from our prior commentary on the matter, the U.S. dollar used to be backed by gold. Up until the middle of the 20th century, gold and silver were used as currency for common items. A recent article we found fascinating examined the question of what would gold and silver prices be if…
Gold Up Five Days In a Row – Is Correction Over?
In our last market update column, we reported how the price of gold and silver had dropped significantly – and rather quickly. With gold dropping nearly 20% to around $1600 per ounce and silver off the same to just under $30, many were starting to question the metals’ status as a safe haven. As we…
Measures of Inflation – Understanding the CPI
If you were to ask 100 people on the street what inflation is, you would either get a blank stare or they would say it’s ‘rising prices’ for goods and services. Historically though, this definition is incorrect…rising prices are a symptom of inflation, which is more accurately defined as an increase in the money supply….
Closing the U.S. Gold Window – 40 Years of Worldwide Paper Money
40 years ago this past Monday, the final link between the U.S. Dollar and gold was severed by President Richard Nixon. Since, the dollar has freely floated against other currencies. Up until that time, gold was exchanged at a fixed rate of $35 per ounce as setup under the Bretton Woods Agreement following World War…
Legislation Introduced to End Taxes on Gold and Silver Coins
On June 28th, a trio of senators introduced the Sound Money Promotion Act, which would treat legal tender gold and silver coins (i.e. U.S. Gold Eagles, U.S. Silver Eagles) the same as U.S. currency in regard to taxes. Currently, 13 states recognize gold and silver coins as legal tender but those coins are currently taxed…
Gold Hits New High after Comments from Fed
As we make our way through the hot months of summer, the gold market is sizzling with news of instability in Europe and rumors of another round of quantitative easing by the U.S. Federal Reserve. Just in the last two days, gold has shot up around $30 per ounce and broke a new record in…
