Wednesday, January 9, 2008

Gold to da Moon Alice!

Oh yes baby, that is the color of real money.

I will now make the prediction here and now that Gold is going to $1000 dollars an ounce.

I see Gold as really the panic meter of the US economy, low gold prices means the economy is doing well and gold is just a pretty yellow metal used in jewelry. When the economy is doing bad and people are afraid of inflation and economic disaster, Gold becomes really currency, it becomes real wealth and it skyrockets in price.

Guess whats coming.


Malcolm said...

Has anyone done a comparison between gold prices in $ and gold prices in various other currencies?

I'd like to see it so we can see how much of the increase has to do with the devaluation of the $

Chris said...

I think that gold prices are roughly the same worldwide relative to the value of the currency.

My understanding is this...

Say 1 UK Pound = 2 US dollars

if an ounce of gold cost 800 us dollars than the same ounce of gold would cost 400 UK pounds.

Malcolm said...

I found this chart

I have to imagine that at least part of it would be devaluation.

If, for example, the UK Pound goes to $3, the price of gold in $ would go up, but the price in UK LB would stay the same.

It looks like this page compares gold and oil to a "base unit" of some sort to take into account devaluations.

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