Gold really isn't rising, is it?

Barry

Serious question. I never had time for Economics101 in college, doing a degree in Engineering and fitting in all the pre-med courses also.

The way I see, the rise in gold is directly proportional to the drop in the US$. If one compares the price of gold to the Euro, it's been relatively stable. Past history shows the US$ usually comes back against the European currencies and the Yen. All you're doing is shorting the US$, as there's no fundamental change in supply or demand for gold. If so, then it doesn't make sense to buy gold now, does it?

jeffnpcb

Give the man a prize!!!!!!
That and acting on a hedge, the price is going up from exchange rates. The Euro is pushing 1.27-.28! It's as if a Canadian went and saw Marty to buy US coins with Canadian Currency!!!

bulloncoins

If you feel the Dollar will snap back in the future agaisnt the other curriencies, then it would not be wise to buy. If you feel like the Dollar will continue to errode in value, then buying makes sense.

It's time to vote.

DrWho

same is true for oil. stable if priced in euros. some could also say the same for the run up in stocks, recently, but since our domestic purchasing power is relatively the same, except oil/gold other materials, we don't notice the stock run up to be a correction to the dollar's value.

very unstable times. i'd hold right now. too late to buy into gold as a hedge on your buck. should have done that at $350.

cladking

The world is likely headed toward more stability financially since the high price
of the dollar was untenable. That this is ocurring in an orderly fashion say a lot
about just how stable things are.

Gold and other commodities are not priced solely in dollars or in pounds or yen, so
there is no certainty that commodities wll move inversely to the dollar. The fact that
they are says a great deal about prospects for inflation.