2 ms·
No in the first case it might take 1 currency to buy 200 apples. Then in the second case it would take 5 currency to purchase the same 200 apples. 1 gold = 200
by pillpicket 7y ago
No in the first case it might take 1 currency to buy 200 apples. Then in the second case it would take 5 currency to purchase the same 200 apples.
1 gold = 200 apples
1 gold * 1 currency = 200 apples
0.2 gold * 5 = 200 apples
- thaumasiotes 7y agoThat's what I was saying, but mark_l_watson is saying that in case 1 the price of gold is higher, meaning a smaller amount of gold to buy the same number of apples.
- mark_l_watson 7y agoI don’t have Rikard’s book in front of me, but from memory I think he was saying that the price of gold would adjust to $10K/ounce if currency were 20% backed by gold, but the price of gold would have to be much higher than $10K/ounce if currencies were 100% backed by gold. I don’t invest in gold, I have always thought that income property is the best investment for common people like myself. Rikard has a different opinion and thinks people should own gold in their portfolio (like 5% gold). I don’t understand the gold market, while income property is easier to understand.