What frame of reference is the most stable or unchanging in its utility or real value over time?
There are really two good “anchor” units that represent stable utility over time in my opinion. First, is gold as I mentioned above for its stable utility or buying power over time. Using gold’s annual moving average removes the volatility created by daily trading and high periods of consumption in the jewelry industry which is seasonal. If something changes in value relative to gold’s annual moving average, it is truly changing in a real sense. Second, is a “weighted basket of currencies” unit known as “Paper Gold” – specifically a basket of world’s 4 largest currencies known as the IMF’s Special Drawing Rights. When global money supply is held in balance with global goods and services, this weighted unit also maintains stable utility value. When money supply increases relative to goods of services (inflation) though, using gold’s annual moving average unit has an advantage. You can not print gold or diamonds like currencies!
