STLLR Gold Inc MEAUF

RE: Why was ME at $5.00??

[goldeagle1]

01/21/80 Gold price at fiat $850.00/oz and with inflation adjustments
we have to look back and how to calculate the Real POG we may use a
below calculate ex...

Friday, January 25, 2008

The "Real" Gold Price

Now that the gold price hasclimbed above the $850 high reached back in January 1980, many areproclaiming that the gold price is at a new ‘record’. That’s true ofcourse when gold’s exchange rate to the dollar is viewed in terms ofnominal dollars, but nominal dollars provide a distorted picture.

Afterall, everyone knows that because of inflation a dollar today purchasesmuch less than it did twenty-eight years ago, so clearly, $850 todaydoes not have the purchasing power it did back then. The questiontherefore arises, what price does gold have to reach in inflationadjusted dollars to equal the purchasing power of eight hundred fifty1980-dollars?

The answer to this question depends upon whichConsumer Price Index is used to calculate the inflation adjusted goldprice. The two alternatives are the US government’s CPI or the CPIprovided by John Williams of www.ShadowStats.com.

These two different CPI measures provide very different inflation adjusted gold prices. So which CPI should we use?

TheShadowStats CPI eliminates the changes made by the US government sincethe early 1980s to its own CPI measure. In other words, the ShadowsStatsCPI is the same one the US government used to calculate inflation whileJimmy Carter was president.

The changes made by the governmentto its CPI were clearly introduced to lessen reported CPI inflation. Alower inflation rate reduces the cost-of-living increases the USgovernment makes to welfare and Social Security recipients, therebyreducing its budget deficit. Welfare and Social Security recipientssuffer the consequences. Their purchasing power is reduced because thepayments they receive do not keep up with the real rate of inflation.

Anexample will be useful to illustrate this loss of purchasing power.Let’s assume that a recipient received $850 per month from the USgovernment in January 1980. Using the US government’s CPI, thatrecipient is today receiving $2,310. However, if the US government hadnot made any changes to the way it calculates CPI, the recipient wouldtoday be receiving $6,255. This difference can be seen in the followingchart, which presents the January $850 gold price adjusted for inflationusing both CPI’s.



Thereare a couple of important conclusions from the above chart. First,gold at its present price of $900 today is still very cheap. In otherwords, it is a long way from the purchasing power an ounce of goldachieved in January 1980. Second, both measures on the above chart showthat the dollar is losing purchasing power every month. So if gold inthe future were to reach a $6,255 gold price, the inflation between nowand then would require gold to reach an even higher price to equal thepurchasing power it had in January 1980.

Rather than reduceinflation, the US government instead shot the messenger. By fiddlingwith the CPI, the US government wants us to believe that inflation isnot as bad as it really is, which is the same strategy it has pursuedwith the other important inflation messenger – gold. Governmentinterventions to cap the gold price prevent the gold barometer fromalerting everyone that inflation is a growing menace.

Toconclude, even though gold is trading at a record high in terms ofnominal dollars, the real gold price is far below the old January 1980record when adjusted for inflation. Gold is still good value, and moreimportantly, government interventions have kept gold cheap, thusenabling us to buy gold at gold prices far less than would be the caseif the government wasn’t intervening. Therefore, continue to spendovervalued dollars to accumulate undervalued gold.

2008 by James Turk

history often repeat itself -

the Gold price have a long way to go back up and
when we reach about the same POG value as in 1980
the ME at fiat $5.00 would be of no surprise to me -

$GOLD P&F Bull Price Obj. fiat $1830.0 per ounce ~<
Let the Gold long term trend be your friend ~<
weekly chart -



The ME Point & Figure TI TA calling for a bullish price objective

$ 0.62 per share


The Stockchart- Point & Figure- P&F- TI- technical indicator is the oldest and
said to be the most reliable -

ME has been oversold and undervalued for way to long time -
but looking better better than it done for the last 10 years
history often repeat itself -
Looking forward to ME hike back UP to the old time $5 + inflation. lol
so we old timers may get back on our old investments.... :-)


ME Chart TA Signal LT consolidation built Strength -

ME Volume Stronger -

ME TA LT great bull run back UP -

Porcupine Gold Mines Camp -

- 100th Anniversary Video -

https://www.youtube.com/watch?v=xM4kJU0gJp4

The Porcupine Gold Mine Camp
is dotted with head frames
and open pit mines;
some old, some newer, evidence of our mining heritage.

Historically, the district has been a major producer
of both gold and base metals.

Timmins Porcupine Gold -

https://www.youtube.com/watch?v=txkyHBbws5g&feature=related

Along the Porcupine-Destor Fault,
which runs 200km from Timmins
to Destor in Quebec, over 65 million ounces of gold
have been mined.

Head frames towering majestically in our city’s skyline
conjure up images of adventure and heroism.

As picturesque as they are, their presence served a
necessary, practical function for past miners -

At present all old Gold Mines is in a new current
Porcupine Gold Rush -

https://en.wikipedia.org/wiki/Porcupine_Gold_Rush

Welcome to Moneta Golden Porcupine Au-Mines

- The Porcupine New Gold Rush is starting

- dd.. Moneta Porcupine Mines ME:TSE listed for 100 years -

https://www.monetaporcupine.com/i/pdf/MONETA-PPT-October2010.pdf



MONETA PORCUPINE MINES Supporting Our Golden Economy

MONETA PORCUPINE MINES(TSE:ME)