Gold is now selling at over $4250. That doesn’t mean that gold is worth more. It means the dollar is worth less. Oh, and silver is now selling at more than $52. The dollar is quickly crashing.
The dollar has lost 3/4 of its value in the past decade, 90% of its value in the last 20 years, and 98.5% of its value since we went away from being a gold based currency in 1973. That isn’t the greed of the banks, that’s the greed of our government.
6 Comments
SiG · October 16, 2025 at 8:07 am
Like you, I’ve been watching this regularly. As I understand it, this means central banks in other countries (the biggest gold buyers) are losing trust in the dollar, so they’re buying (gold and silver) instead of US Treasuries. That distrust is a significant step toward the economic collapse of the US?
Divemedic · October 16, 2025 at 8:23 am
It’s an ominous signal. The thing that makes the US an economic powerhouse is the US Dollar’s use as the world trade and reserve currency. What got the dollar to that point was twofold:
1 The enormous US manufacturing capacity that was largely untouched by the two World Wars blowing up the work of 500 years of progress in Europe
2 The large amount of creative and engineering prowess. The things that were invented in this nation were incredibly good for the dollar
The US is no longer the owner of those two factors. Combine that with the behavior of our government as they use our currency and economic influence (sanctions, anyone?) to tell other nations how to do things, then combine that with the imperial behavior of our military and intelligence communities, as well as our enormous national debt, and you have a recipe for economic disaster.
I also believe the reason why Trump suddenly stopped calling for an audit of the gold in Fort Knox is because it isn’t there. If it were to become public knowledge that the gold of Fort Knox has been raided, the US economy would collapse, and the world economy would go with it.
Texas Dan · October 16, 2025 at 9:08 am
By this reckoning, the prices of goods should be four times higher than in 2020. They are not. The reason is simple, there is no widely used currency tied to a physical constant. The dollar remains the champ, until another lunatic Democrat gets in office.
Divemedic · October 16, 2025 at 10:16 am
As long time readers are aware, my Denny’s Grand Slam scale is a great example of this. That breakfast has 2 strips of bacon, two link sausages, two eggs, and two pancakes. A good cross section of food products. I have been using the price of this breakfast in the same Denny’s location since 1997 as an indication of costs.
Here we are in 2025, and the cost of that breakfast is now $14.19.
In 1997, that breakfast cost $1.99
In 2009, it cost $4.99
In 2021, it cost $9.29
Just a year later in 2022, it was $11.59
In 2023, the rate slowed a bit. The breakfast was $11.99 in April
By November of 2023, the price was up again, to $12.99
So the breakfast in 2021 was $9.29, and it is now $14.19, a 65% increase in four years. I also think they make this up with increases in other things, such as the price for coffee.
The reasons why the weakening dollar doesn’t cause a 1:1 increase in retail prices is:
1 Many goods today are made in China. They have the advantage of near slave labor. Increases in export costs (like currency imbalances) affect this sort of labor to a lesser extent than it otherwise would. That’s part of China’s competitive advantage over the US.
2 For this reason, goods increase in dollar denominated costs, but not at a 1 for 1 rate.
TRX · October 16, 2025 at 9:26 am
Some time ago I read an article that claimed that historically, a cow was worth about one ounce of gold.
Out of curiosity, I tried looking up the price of a cow. It turns out that varies widely, but it looks like a dairy cow can run between $2,500-$3,500 to as high as $5,000, so the claim doesn’t seem completely without merit.
JNorth · October 16, 2025 at 10:08 am
Huh, and the most the Hunt brothers were ever able to get silver up to was 49.45.