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<p>[QUOTE=&quot;sylvester, post: 1248463, member: 708&quot;]I once read an article (written by a gold bug admittedly) that stated that we approach gold and silver from the wrong angle [i&#039;m still not sure i&#039;m 100% convinced by all of this as I think gold can go up in value beyond it&#039;s true level as in bull markets only to fall again later, but here goes...].</p><p><br /></p><p>Rather than taking dollars as the stick to measure by and seeing how gold rises and falls. We should actually use gold and silver as the static baseline and track the fluctuations in the currencies (dollars/euro/sterling or whatever). The trend of what is really happening then becomes apparent. If you look at the amount of dollars required to buy an oz of gold from 1971 to present. Assuming you agree that gold has an innate intrinsic value that is static (as the article suggested) then when you measure the currency against it, the ravages of inflation become rather apparent, and this is not in the bull periods but rather in the quieter times between, literally gold stays put, currency erodes, and in times of crisis like &#039;quantative easing&#039; the currency supply grows larger and thus diminishes in value, so gold appears to go up, when in reality it&#039;s the currency going down.</p><p><br /></p><p>Just a thought.[/QUOTE]</p><p><br /></p>

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