by Byron King
Daily Reckoning
How much gold do you own? The correct answer is: “Not enough.”
Don’t you wish you had some of these? This is a $20 gold coin from 1914, the first year of the Federal Reserve. And back then, just over 110 years ago, gold was $20 per ounce.
[…] Today’s gold price is over $2,900, which means that the purchasing power of a dollar over the past century-plus has shrunk by a factor of 145x. In other words, a single dollar back in 1914 is the equivalent of $145 today. This is why people and institutions (certainly central banks) are buying gold. And it’s why gold deserves a place in every portfolio.
Let’s dig into what’s happening with gold, what it means, and how to deal with it.