# Gold is up $49 and the dollar index is down



## BillS (May 30, 2011)

Gold is up $49 so far today. The dollar index is down 1.39%. It will be interesting to see if Obamacare being upheld causes panic selling of the dollar. Here are some sites you should check regularly:

http://www.kitco.com/charts/livegold.html

http://www.bloomberg.com/quote/DXY:IND


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## tac803 (Nov 21, 2010)

I don't know if obacare will cause a panic in the dollar, but I'm pretty sure it's going to drive prices of medical care out of sight.


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## Sam (Jan 7, 2009)

You are looking at it all wrong.
Gold does not "go up" or "go down".
Gold is the baseline, the reference point.

What ya should have said is "the price of dollars went down"


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## UniqueOldGal (Mar 7, 2012)

Sam said:


> You are looking at it all wrong.
> Gold does not "go up" or "go down".
> Gold is the baseline, the reference point.
> 
> What ya should have said is "the price of dollars went down"


Well... some people buy and sell gold and it's not just a reference. When a person buys a gold coin for $50 and a couple of years later can sell it for 4x what they paid in dollars and food is only 2x in dollars what it was( in the same time period )....then it sure seems like gold went "UP" since it's buying power is more,not the same !


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## Sam (Jan 7, 2009)

Dollars are the variable, not the gold.


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## BillS (May 30, 2011)

Sam said:


> Dollars are the variable, not the gold.


Gold, silver, and dollars are all variables. If you go back about a year ago gold went up faster than the dollar dropped. Silver has dropped by about a third without a corresponding rise in the dollar.


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## Sam (Jan 7, 2009)

OK, 
#1 why do you hold gold
#2 what was the purpose of the "gold standard" (which the US never had)?
#3 why do "central Banks" hold gold?


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## BillS (May 30, 2011)

Sam said:


> OK,
> #1 why do you hold gold
> #2 what was the purpose of the "gold standard" (which the US never had)?
> #3 why do "central Banks" hold gold?


I hold gold because the dollar is going to collapse.

The US had a gold standard. Check this out:

http://en.wikipedia.org/wiki/Gold_dollar

http://en.wikipedia.org/wiki/Gold_standard

Central banks hold gold because it's money and because all fiat currencies are subject to too much money printing.


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## Sam (Jan 7, 2009)

> This was, in effect, a derivative silver standard, since the bank was not required to keep silver to back all of its currency


Because gold is the the fixed asset.
Gold does not vary and the price of dollars goes up and down


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## Sam (Jan 7, 2009)

BTW I have several of the gold dollars, The only gold I hold. $20 are too big to be useful.

Keep most of your wealth in silver dimes


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