Matt Whittaker from the Australian reported through the week some insight into this important investment commodity:
Understanding: Why is gold so strong at the moment?
Interpretation: Why does Frank Lesh say that 'gold is the new international currency'?
Wider reading: Is there some history to the idea of gold as an international currency or standard?
2 comments:
According to this resource and a few others I've seen Gold is considered a 'Dollar Hedge' where if the economy starts failing and the dollar (US in particular) starts decreasing; the value of Gold will improve. This can be seen in a comparison through the values of the US dollar and the value of Gold during 1993 to 2004
http://www.invest.gold.org/sites/en/why_gold/gold_and_the_dollar/
When the US dollar is weak, Gold price increase. Investors use Gold as a safe haven for there money. Historically gold is known to always appreciate much the same as property. Gold acts as another currency.
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