A historic moment in the price of gold happened today when the price of gold hit that magical 1000 dollars an ounce. For gold bugs this was champagne time (paid for with gold of course) and a celebration of that which they have known for years. Gold is Money!
This does not say much for the dollar but it says an awful lot for the price of gold. This is a highest ever. Various factors have influenced the dramatic rise of gold, most notably the ever weakening paper dollar. In 6 months gold has more than doubled. In 5 years gold has more than tripled! This shows where the real faith and trust is. Not in the US dollar or, for that matter, any fiscal paper money, but in good solid shiny yellow gold!
Those that say buy gold and own gold are now running around saying, "I told you so!", "I told you so!" and they are right.
Gold IS money!
Predictions from gold experts are now that gold is likely to reach an incredible 2000 dollars an ounce this year!
How could this be? It is, as has been so ably pointed out, not the value of gold that is changing, but the value of the fiscal currency. As the price of gold rises, the true value of the dollar in your pocket comes to light. Those people that own gold will still be able to buy the same amount of service and products with their ounces of gold while people continue to scrabble around to find that even more dollars are required to buy the same product or service as an ounce of gold.
Gold is more than a hedge, more than a safe haven. It is a established bank of asset worth, for the astute investor, the person who saves and, indeed, even the person who uses gold as a currency, for gold is gold and paper is paper.
This gold price rise is not a fly by night increase. This is not the 1980s all over again. This is a steady stable rise that has been going on for ten years and the trend looks set to continue off into the distant future until the true value of the heavily inflated paper currency matches the value of pure gold.
That could be many thousands of dollar to an ounce of gold.
So watch this space for the true value of the gold price in the future and remember, Buy Gold!