Al Kowsky Posted July 17, 2022 · Member Share Posted July 17, 2022 It's probably a good idea to define what inflation is 🤔. The way I see it is, there are two definitions to inflation, an old & a new definition. The old definition was "the amount of paper currency exceeding the amount of backing behind the currency", & that backing used to be gold in reserves or any commodity with an established & stable value like oil (in ancient Rome it was olive oil & today it's motor oil 🤣). The new definition is "the amount of paper currency chasing goods & services with no regard to a physical backing of any kind". The new definition relies on the honesty & credit worthiness of the entity issuing the paper currency. If we perceived the value of gold with the "old" definition of inflation the price of gold should be soaring right now, however, just the opposite is occurring, so why is this happening 🤨? It appears investors still have enough faith in the value of paper currency to put their money into investments that yield more paper currency, like T-bills, stocks & bonds ☺️. But how long will this trend continue 😏? I've recently noticed a slight decline in values of ancient coins from the major auction houses world-wide, never the less, the ancient coin market still looks strong. What are the thoughts of fellow members of NVMIS FORVMS in regards to inflation & the current market trends ☺️? 6 Quote Link to comment Share on other sites More sharing options...
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