Msg. 39133 of 45651 (This msg. is a reply to
39104 by
Decomposed)
Jump:
decomp
...the price of gold varies, because it is measured in dollars and the value of the dollar varies. The value of gold is the only "constant" we have in this equation. Ya can still buy a gallon of gas or a bag of groceries for the same amount of gold it took last week, last month, last year, last century.
I could be wrong, but that's how it looks to us frogs.
Liberals are like a "Slinky". Totally useless, but somehow ya can't help but smile when you see one tumble down a flight of stairs!
re: "De, sounds like gold might be tracking inflation then..."
Perhaps. My first thought was that gold's price is a function of inflation. But it's not that simple. Gold is a function of other things as well - most notably, people's expection ... of FUTURE inflation; ... of future wealth confiscation by government(s); ... of future need to bribe officials; etc.
Besides that, investing in something that tracks inflation during a time of high inflation is pretty smart. In fact, it's what wealth preservation is all about.
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