Revival Of The Gold Myth by Bani Arora
When the dollar weakens, gold prices tend to rise, since a plummeting buck means it takes more dollars to buy the same ounce of gold. Can changes in the US interest rate serve as an important mediation? Heres how you can trade the shiny metal.
Is a muddled state of mind leading to the recent gold price rally? How about this for a little confusion: As a measure of weight, an ounce is only a fraction of a pound; however, as a measure of monetary value, a British pound gets you only a fraction of an ounce of gold.
FIRST, A LITTLE HISTORY
During the 19th century, an epoch of the unchallenged gold standard, money was neutral. Bank notes were in circulation, but they were convertible into gold at any moment. Today, money is built on paper promises and has never been less substantial and more nominal, thanks in part to aggressive quantitative easing (QE) programs across the world...