Though we’re no longer on the gold standard, and despite periodic suggestions by a few economists that we should return being considered almost “crackpot,” it’s still important for anyone who has more than a few dollars invested to understand the value of gold.
The term “gold standard” is still used in marketing to describe the best available product or idea, and it’s for good reason.
In the economy of early 2009, we see that the U.S. dollar is continuing to decline when measured against other currencies. On the other hand, we see the value of gold continuing to appreciate, having hit $1,000 early in the year before settling back in a range above $900. But it hasn’t been too long since the price was far less than this.
There are probably no metals more recycled than gold. Gold once possessed by King Solomon or King Midas may well form part of the wedding ring you’re wearing today.
Gold is eternal; it is virtually impossible to destroy and it is too valuable for much of it to be lost.
In the 2009 commodities industry, gold is just about the only commodity that is holding its own. Base metals, including copper, zinc, aluminum and even iron ore, have fallen dramatically in price in the past year. Other precious metals, including platinum and silver, have fallen far from their year-ago peaks.