Demise Of the Dollar How Fast Must It Happen Before People Begin To Notice?

The Golden Economizer
October 16, 2010

Since the first week of June, 2010 the US Dollar Index (USDX) has dropped from 88.3 to 76.7. Well, what does that mean, you say? It means that the dollar has lost 11.6% of its value in just over four months. Compared to what you say? Compared to a basket of international currencies which are all declining. So what does that tell us? Not much, not much at all.

To get a better idea of the actual decline of the dollar's purchasing power over the same period, let's look at the dollar price of gold:

June 3, 2010 spot gold on the NYBOT closed at $1205.80
October 14, 2010 spot gold on the NYBOT closed at $1379.50

Over that same period of time, gold has appreciated 14.4% measured in US dollars. Or more accurately, the dollar has depreciated 14.4% measured in gold. Hence the dollar has lost more than 14% of its purchasing power compared to gold in a little more than four months......read on