The price of gold took a big hit today, something we noticed while having an interesting conversation about the dollar index and US dollar's recent strength (as measured by said index) earlier today on Twitter.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5gT1C77EDS2Yy8JN6Q4FtzHND5j-c_BYs0qw6tXkOe90Z2TDy6BUd-Vq88d2yDVW_FrWjIbY-hF7ArpA5EKKao9lrR4iHDFGOE6vk7vdiYEeKhiz1CpExOwUesMwxtI4SB8RDZw/s400/USD+purchasing+power.png)
Still, we have to keep our eye on the big picture here. The long-term trajectory of the US dollar and its purchasing power, as measured against a constant store of value (such as gold), is down. Conversely, the longer-term trajectory of the dollar price of gold is up.
Food for thought.
Related articles and posts:
1. Bloomberg: weak dollar, inflation "illusory" - Finance Trends.
2. Dollar's purchasing power annihilated - Zero Hedge at Seeking Alpha.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5gT1C77EDS2Yy8JN6Q4FtzHND5j-c_BYs0qw6tXkOe90Z2TDy6BUd-Vq88d2yDVW_FrWjIbY-hF7ArpA5EKKao9lrR4iHDFGOE6vk7vdiYEeKhiz1CpExOwUesMwxtI4SB8RDZw/s400/USD+purchasing+power.png)
Still, we have to keep our eye on the big picture here. The long-term trajectory of the US dollar and its purchasing power, as measured against a constant store of value (such as gold), is down. Conversely, the longer-term trajectory of the dollar price of gold is up.
Food for thought.
Related articles and posts:
1. Bloomberg: weak dollar, inflation "illusory" - Finance Trends.
2. Dollar's purchasing power annihilated - Zero Hedge at Seeking Alpha.