Despite recent setbacks, gold and silver have been the strongest currencies on the planet for the last 13 years. The global supply of gold and silver remains somewhat constant, increasing at a rate of about 1% per year, while global supply of fiat paper currencies can be expanded by any percentage size, at anytime.
By Tekoa Da Silva
Posted Friday, 8 March 2013
Gold Seek
In reflecting on this two-year smash of precious metals, and in particular, mining shares, let's take a look at some currency history of the last decade to provide us with some much needed mental capital.
With the help of Nick Laird over at Sharelynx.com, I was able to track down a few charts documenting the staggering percentage growth increases of gold and silver when compared to the world's major currencies. What I found was shocking:
Despite recent setbacks, gold and silver have been the strongest currencies on the planet for the last 13 years.
Here is a chart of percentage growth returns of gold & silver vs. major world currencies:
What's important to note is that global supply of gold and silver remains somewhat constant---increasing at a rate of about 1% per year (and falling), while global supply of fiat paper currencies can be expanded by any percentage size, at anytime. Therefore, we must conclude that either pre-existing supplies of global currency units having been rushing into precious metals over the last 13 years, or the total global money supply of all currencies is expanding at a frightening rate---with gold and silver signaling the expansion.
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