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<p>[QUOTE=&quot;Bill in Burl, post: 890469, member: 23692&quot;]Gold is priced on the world markets in US dollars.&nbsp; The value of the US dollar has fallen appreciably over the last 5 years compared to more stable monetary units (from whatever country).&nbsp; I live in Canada, but receive all my retired pay in US dollars that I must convert to Canadian dollars every moth to live up here.&nbsp; The value of the US dollar compared to the Canadian dollar has dropped almost 60% since I moved up here because Uncle Sam kept the printing presses max&#039;d out.&nbsp; </p><p>&nbsp;</p><p>I used to get $1.60 Canadian for each US dollar and now it is near par ... I&#039;m losing 60 cents on every US dollar.&nbsp; The actual decrease has only been 38% (60/160) but still significant.&nbsp; The price of gold has risen appreciably in terms of the US dollar, but much much less in terms of a more stable currency.&nbsp; The price of gold, as a commodity itself, is controlled by supply and demand ... and that is controlled by the mining companies, just like DeBeers and diamonds.&nbsp; If the price is low, they decrease production so it cuts down the supply.&nbsp; Then demand catches up to supply and the price stabilizes and then rises.&nbsp; The gold mining companies know how to play both ends against the middle, so it&#039;s not how much gold is left in the earth, but how much the companies want to remove depending upon the market.&nbsp; The mining companies know what the &quot;break-even&quot; point is and are never going to produce as much as they are capable of producing.&nbsp; The more that doomsday prophets fan the flames about $3000 an ounce gold, the more the compaies will choke down supply to make it rise further.</p><p>&nbsp;</p><p>Cut the budgert deficit .. or better yet reduce the total debt (the deficit is just how fast the debt is growing) ... get more jobs so more people are paying taxes and companies are as well and the GNP and economy will pick up.&nbsp; The US dollar will strengthen on the world market and gold will appear to &quot;lose&quot; value, but it&#039;s still the same gold and the same market ... the only thing that changes is the currency value that it is priced in.[/QUOTE]</p><p><br /></p>

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