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> Most recently for example, the price has gone from $260 per troy ounce in 2001, to peak at $1,921.15 in September 2011, before falling back to $1,230 currentl
by MRSallee 13y ago
> Most recently for example, the price has gone from $260 per troy ounce in 2001, to peak at $1,921.15 in September 2011, before falling back to $1,230 currently. That is hardly the behaviour of a stable store of value.
Is it gold, or the dollar that's exhibiting that behavior?
- jbooth 13y agoGold. The dollar's been mostly at 1-2% inflation through that time period, reaching a high of 5-6% (I think? from memory here) for a year or two during the peak of the housing bubble. Gold had a huge ramp-up in value after the housing bubble burst, due to people panicking that the dollar would lose value. There were a lot of people with a vested interest in hyping the idea to sell gold, as well. The dollar's been very stable compared to other currencies or compared to baskets of dollar-denominated goods other than gold.