I wrote last week that, if asked, I would recommend a parity value around $1600/oz. today, which is about the 12-month moving average for the dollar/gold ratio. Tamny mentions that his $800/oz. figure is around the ten-year moving average. He is ribbing me a bit with this figure, because I wrote in my book Gold: the Once and Future Money that the ten-year moving average would be a good approximation to begin this discussion. He’s reminding me, in other words, that I am disagreeing with myself!
Or, maybe I have changed my mind.
Read Full Article »