Inflation Rate is 5.6%... and Other Nonsense

Supply and demand haven’t shifted much, if at all. In fact, the value of gold and silver haven’t shifted much in the past five years, either. An ounce of gold or silver will still buy you about as much stuff as it would in 2003 or 2004.

What’s happened is that the value of the Federal Reserve so-called “dollar” notes in which these metals are denominated has fallen neatly in half.

It’s called inflation.

Gold, silver and most other commodities are not really investments. They are hedges against inflation - an anchor in a tempest. As long as we have inflation, paper money loses value almost daily.