What The Hell Happened To Gold?Posted: September 15, 2011
Today the price of Gold dropped another 45 dollars making it 1,778.20 (sept 15 2011). When I was considering buying gold it was just at 1880 following the S and P rating. My inquiry led me on an interesting journey into my own ethnocentric ignorance. I tried to figure out why Gold, would lose value or gain value. Did Gold become discovered somewhere in the country? Is the gold scare causing the scarcity of Gold to rise? On the contary, the value of gold never changes. I found out that the reason the price of Gold dropped was because the Eurozone was going to be doing better with its saving of greece, and that Gold was generally lowering in value as people prepared for a possible stimulus plan people’s trust in the dollar would increase. Gold doesn’t change value, it’s a litmus test for the value of a monetary unit. What I’ve witnessed by watching the price of gold drop and increase, was actually a momentary increase in the worth of the worth. I’m so american-english driven that I see things through the dollar’s eye when really the number next to Gold is Gold telling us how much we are worth, the lower the better.
This leads to an interesting contradiction, that those who invest in gold and fight for gold hurt their investment. That what ultimately helps them, the de-valuation of the dollar, stimulus and bailout packages, is what they constantly fight against. If I invested 100k in gold, I should be hoping that the government continues to make stupid decisions in order to increase the value of Gold by de-creasing the value of the gold and vice versa. BUT! IF I truely WANTED more equality, more fairer things in the world, I would be honest and tell people that we ought to fight for Gold because it has a fixed standard and have other people invest in Gold too, thus increasing the value of the dollar as it relates to the gold standard, the value of my 100k would go down and I would not deceieve any of the fun free money from the federal government and I would be worse off, but my country would be better off. Do you see the contradiction?