Freegold in Action

This chart shows that once the price suppression of gold ended in 1971 and the price of gold was free to float at a market price, the price of commodities tumbled rapidly as gold was freed from its chains. Commodity prices have since fluctuated in a range of 50% based on economic cycles, as demand for commodities and money rises and falls. If you click through to the article, it shows that in terms of gold, the price of commodities has been in a steady downtrend for many decades, which as author Dan Popescu points out, makes perfect sense given technological progress. Prices should be falling, but it has been masked by massive amounts of inflation in the supply of money and credit.

A great post on what is and what isn't inflation in Gold vs the CRB Commodity Index, where the chart comes from.

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