US Dollar vs Gold Chart

This graph shows the remarkable devaluation of the US Dollar.
Look how drastically the value of the dollar falls after President Nixon took us off the gold standard in 1971. This illustrates perfectly why saving dollars is a poor idea. why would you hold onto something that continues to lose value every year? This explains why the previous quote from Thomas Jefferson is so very true. In 1913 the Federal Reserve was created and given the authority to issue currency and since then the savings and wealth of Americans has been eroded nearly to the point of non existance.

The Charts

Recently there has been a rash of news about how Gold has broken through its lower support line and a further price drop could be coming but here is a chart that I just laid out as of February 20 and it looks like the actual support line is around $1525-$1530. Gold is still within its consolidation pattern and unless it closes through that support line I see no reason for the panic.

 

Here is the silver chart over the same time period and as you can see it is also still well within its consolidation pattern.

 

This chart is interesting because it shows the duration periods of the last 2 major consolidations in the Gold price and the timing of the end of our current consolidation does seem to correlate closely with a bounce off the support line above and also the maximum consolidation of the silver pattern.