Economic Hallucinations

Two generations ago the gold price in Bombay was about 450 rupees, whereas today it is about 58,000 rupees. Indians, along with nearly all non-Westerners, generally assume that, rather than the gold price being up, the money is down. Put differently, gold is gold, copper is copper, it’s the money that changes. Only in the Anglo-American world do investors consider money stable and things (gold, copper, whatever) volatile. It will prove a fatal mistake.