Posted 9/14/2020 11:40 (#8495071 - in reply to #8494649) Subject: percentage moves
But percentages don't.
A 10% move up from a low level is a lot less dollars move that from a higher level. Yet the percentage move could be the same. As the dollar value in purchasing power becomes less the moves in dollar amounts will become greater.
Does not mean gold will buy any more. Just that the dollar will purchase less.
In 1870 the farm I live on sold for $20 an acre or one ounce of gold (double eagle). It stayed in a range of one to two ounces over most of my lifetime. Today with the improvements it would take bout two ounces but the bare land maybe one to one and a half ounces if it were not located where it is near housing.
A 50% increase in "gold price" in 1870 would have made it $30. But a 50% move today would be considerably more dollars. The gift of inflation.