{"id":42959,"date":"2019-01-19T08:54:39","date_gmt":"2019-01-19T13:54:39","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42959"},"modified":"2019-01-19T08:54:39","modified_gmt":"2019-01-19T13:54:39","slug":"real-inflation-expected-to-rise-hedge-your-bets-with-gold","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42959","title":{"rendered":"\u201cReal\u201d Inflation Expected to Rise \u2013 Hedge Your Bets With Gold"},"content":{"rendered":"
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\u201cReal\u201d Inflation Expected to Rise \u2013 Hedge Your Bets With Gold<\/a><\/h3>\n

\"hedge<\/p>\n

Some are under the impression that gold\u2019s performance in the U.S. is not as good as it should be, considering we had a rather uncertain year last year.<\/p>\n

In the U.S., even economists who favor the dollar gold price<\/strong> might be blind to an upcoming rise in the financial power of the precious metal.<\/p>\n

That, and real inflation<\/a> may become a better gauge to see just how well this measuring stick is doing. Though revealing it at the federal level may send the market into a panic.<\/p>\n

The \u201cDollar as Yardstick\u201d Problem<\/strong><\/p>\n

According to<\/a> Ross Norman at Sharps Pixley, using the dollar\u2019s strength to measure net worth in the U.S. could give you the impression that we have a \u201cstrong dollar.\u201d But that yardstick shrinks as inflation<\/strong> eats into it. This means using the dollar as a \u201cyardstick\u201d for measurement isn\u2019t consistent.<\/p>\n

Using inflation as a gauge for shrinkage can give you a decent picture of how \u201cstrong\u201d or \u201cweak\u201d the dollar\u2019s measure is, assuming<\/em> you\u2019re using an accurate gauge.<\/p>\n

As Norman explains (emphasis ours):<\/p>\n

Measuring our net worth in local currencies, we might be rather pleased with ourselves \u2013 smug even. However we chose to ignore the fact that the yardstick is not a constant \u2026 it is shrinking and sometimes really quite fast. It\u2019s the natural corrosive effect of inflation. Knowing this, governments give us a gauge for yardstick shrinkage to use such as RPI or CPI, to reassure you that the shrinkage is minimal\u2026 and then lie about it<\/strong>.<\/p><\/blockquote>\n

For those who don\u2019t know some of the terms Norman uses, the CPI<\/a>\u00a0is the Consumer Price Index, which is compiled by the Bureau of Labor and Statistics (BLS) and used by agencies like the Fed. The Retail Price Index (RPI) is essentially the same thing, but based in the UK.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cReal\u201d Inflation Expected to Rise \u2013 Hedge Your Bets With Gold Some are under the impression that gold\u2019s performance in the U.S. is not as good as it should be, considering we had a rather uncertain year last year. In the U.S., even economists who favor the dollar gold price might be blind to an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,1055,172,303,374,426,647,839,3650],"class_list":["post-42959","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-consumer-price-index","tag-cpi","tag-fed","tag-gold","tag-inflation","tag-precious-metals","tag-us-dollar","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42959"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42959\/revisions"}],"predecessor-version":[{"id":42960,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42959\/revisions\/42960"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}