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DXY (dollar index) closed at 102.485 on 10/7/2024 DXY (dollar index) closed at 98.569 on 10/7/2025 Therefore, the dollar is worth 3.8% less than it was one ye

DXY (dollar index) closed at 102.485 on 10/7/2024 DXY (dollar index) closed at 98.569 on 10/7/2025 Therefore, the dollar is worth 3.8% less than it was one year ago. Gold is worth substantially more, this does not mean dollars are devalued by the amount that gold went up. If you insist that gold doubling means dollars halved, I will not engage with you further. > At least for now, until a currency comes along that has a positive value proposition. Currencies are a unit of exchange and a unit of account. A currency that appreciates in value is bad, it encourages hoarding currency. Money changing hands is good, look into ‘velocity of money’. If you want to preserve value long term then buy land, gold, stocks, crypto, bonds, and other assets. > The U.S. Dollar Index (USDX, DXY, DX, or, informally, the "Dixie") is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,[1] often referred to as a basket of U.S. trade partners' currencies.[2] The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies. DXY Wikipedia: https://en.wikipedia.org/wiki/U.S._Dollar_Index https://en.wikipedia.org/wiki/U.S._Dollar_Index DXY Chart: https://finance.yahoo.com/quote/DX-Y.NYB/ https://finance.yahoo.com/quote/DX-Y.NYB/

jart 1y ago
If I'm right, then your entire framework for understanding wealth and value is compromised. You'll remember that of all sad words of tongue or pen, the saddest are these: Justine was right again.
kapone 1y ago
This is the most naive take on...well, currencies, gold and their relationship, that I've seen in a very long time. Imagine it was 1970. You had dollars and you had gold and they were inexorably tied to each other. Gold was ~$35/oz at the time and you swap dollars for gold easily. You could keep your "money" in dollars or gold. If you chose dollars at the time...you made very bad decision (1972...Nixon...the US went off the gold standard...and all that). There's no DXY to measure from that time, but who gives a shit. Let's measure in terms of "Purchasing Power". In the early 70s, the average wage in the US was ~$9800 and the average house price was ~$17,000. So, at the time you could take your "dollars" and buy the median house for $17K or so. So, roughly twice the median wage. Fast forward a few decades... In 2022 the average wage in the US was ~$54,000 and the average house price was ~$375,000. So....roughly 6.5 times the average wage. Notice a problem yet? Now, let's take gold. Price in 1970 - $35/oz Price in 2022 - ~$2,000/oz. Price in 2025 - ~$4,000/oz So, gold has gone up ~57x, from 1970 to 2022 and ~114x from 1970 to 2025. If your wages had climbed in-line since 1970, the average wage in 2025 would be $1.2M, but of course it didn't. Why? It's the dollar stupid, not gold. If you took every spare dollar you had in 1970 and bought gold...vs keeping dollars in the bank... That's the dollar's "worth", not a fucking index against other fiat currencies.
quickthrowman 1y ago
I knew this post was a stupid idea, lol. Crossing ‘gold’ and ‘currency valuation’ off the list of topics I discuss on this website, only cranks respond unfortunately.

jart 1y ago

If I'm right, then your entire framework for understanding wealth and value is compromised. You'll remember that of all sad words of tongue or pen, the saddest are these: Justine was right again.

kapone 1y ago

This is the most naive take on...well, currencies, gold and their relationship, that I've seen in a very long time. Imagine it was 1970. You had dollars and you had gold and they were inexorably tied to each other. Gold was ~$35/oz at the time and you swap dollars for gold easily. You could keep your "money" in dollars or gold. If you chose dollars at the time...you made very bad decision (1972...Nixon...the US went off the gold standard...and all that). There's no DXY to measure from that time, but who gives a shit. Let's measure in terms of "Purchasing Power". In the early 70s, the average wage in the US was ~$9800 and the average house price was ~$17,000. So, at the time you could take your "dollars" and buy the median house for $17K or so. So, roughly twice the median wage. Fast forward a few decades... In 2022 the average wage in the US was ~$54,000 and the average house price was ~$375,000. So....roughly 6.5 times the average wage. Notice a problem yet? Now, let's take gold. Price in 1970 - $35/oz Price in 2022 - ~$2,000/oz. Price in 2025 - ~$4,000/oz So, gold has gone up ~57x, from 1970 to 2022 and ~114x from 1970 to 2025. If your wages had climbed in-line since 1970, the average wage in 2025 would be $1.2M, but of course it didn't. Why? It's the dollar stupid, not gold. If you took every spare dollar you had in 1970 and bought gold...vs keeping dollars in the bank... That's the dollar's "worth", not a fucking index against other fiat currencies.

quickthrowman 1y ago

I knew this post was a stupid idea, lol. Crossing ‘gold’ and ‘currency valuation’ off the list of topics I discuss on this website, only cranks respond unfortunately.