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TheLonger Term Implications of Basel III (January 2013) - Gold's Triumphant Return?
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<p>[QUOTE="InfleXion, post: 1605131, member: 29012"]When the dollar was initially conceived it was measured in grams of gold and silver. What we have today is backwards. Currency should not be the yard stick because it is not a reliable store of wealth. When currency was backed by gold that was fine and well, but now with a debt based currency it's an unreliable method. That is why metals had the role they had in the past, and why they are returning to that role. </p><p><br /></p><p>It really just depends what you are measuring with, and the heat analogy doesn't work in this case because temperature is a reliable measuring stick unlike debt based currency. If we're to get into specifics as to how best to measure the value of gold, personally I would weigh it against other commodities, silver, copper, real estate, etc. but not something that can be debased with the push of a button.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1605131, member: 29012"]When the dollar was initially conceived it was measured in grams of gold and silver. What we have today is backwards. Currency should not be the yard stick because it is not a reliable store of wealth. When currency was backed by gold that was fine and well, but now with a debt based currency it's an unreliable method. That is why metals had the role they had in the past, and why they are returning to that role. It really just depends what you are measuring with, and the heat analogy doesn't work in this case because temperature is a reliable measuring stick unlike debt based currency. If we're to get into specifics as to how best to measure the value of gold, personally I would weigh it against other commodities, silver, copper, real estate, etc. but not something that can be debased with the push of a button.[/QUOTE]
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