Gold: Stronger Than Yesterday

The title of this post is absolutely different with what I'll say. First, If you see the image at the bottom of the page, you'll see that everyday the gold price is getting higher and higher. You can compare it with the image on the right side of the page (24 hrs and 8hrs gold price), what you can get? Yes in short terms the gold price is up and down depend on several factors caused by markets activities, but in long terms the trend is climbing every year.


As I told you before again and again, actually the value of gold is almost flat, the problem is on the value of your money of which the gold value is compared. Inflation is one factor of money value to decrease. 100 years ago you cannot imagine what you can buy if you have US$ 1000 in your hand, today of course you cannot buy as much as 100 years ago with that amount of money. But 100 years ago or even 1000 years ago if you buy a good cattle for 10 grams of pure gold even today you can buy the same amount of cattle with approximately the same price of that gold.

Figure. 1

Look at figure 1. let's say that blue line represents the value of gold and red line is the value of money. Remember value not price. That sample shows that actually the gold value is "almost" the same, but your money value is decrease because of inflation.

Figure 2

Look at figure 2 (Blue-money, red-Gold) since we always compare the gold value with money value (which has unique denomination, $1, $5 and soon) that we always think that money will always has the same value as the nomination written on the paper. The gold values seems always climbing and climbing. The point is if you have $10 today and you keep it, 10 years after now it's value is not $10 anymore even the number on it is the same, but if you have 10 grams of gold today and you keep it, 10 years from now it is still 10 grams of gold. So, Gold is not stronger than yesterday, it is same as yesterday but your money that weaker than yesterday and make gold seems stronger and it will always like that. Still interested to keep your money as financial security? Think again.