What will happen to gold and silver?

[BRG253]

I understand that gold and silver will go way up relative to US dollars. But what will happen to the value of gold in relation to oil, food, clothing, etc? Will an ounce of gold merely maintain its purchasing power against inflation, or will it actually make you wealtheir?

 

[mojobo]

Gold and Silver should go up in terms of food and clothing and stay relatively constant to oil (although there will probably be price controls on oil by government). Because prices are rising in nominal terms more and more resources will go into producing basic commodities which will in turn cause real prices to go down. The supply of gold, silver, and oil is basically constant. You can commit more resources to mine more gold and silver, but it wont have the same effect because one of the reasons they are so valuable is their supply can't be easily increased.

 

[hazek]

I understand that gold and silver will go way up relative to US dollars. But what will happen to the value of gold in relation to oil, food, clothing, etc? Will an ounce of gold merely maintain its purchasing power against inflation, or will it actually make you wealtheir?

Depends on what's going to happen to the supply and demand of both oil, food, cloths and of gold.

 

[cubical]

imo there will be deflation in terms of gold/silver

 

[Acala]

It depends on how much, if at all, gold and silver are "remonetized". In other words, if the demand for gold and silver remains as it currently is - industrial, jewlery, and inflation hedge - then the exchange value will stay the same relative to other goods and services. But if people, or States, turn to using gold and/or silver as a medium of exchange, the demand goes through the roof and so does the exchange value.