It may be as easy as looking at the gold rate today chart to keep track of the economy’s state. The gold price chart could serve as a simple indicator for the average citizen, as it shows the details of a falling dollar, slow economy, and lackluster job growth.
Investors want to preserve their wealth in a safe place like gold as the dollar loses value. They change their holdings from dollars to gold. There are good reasons to make the change, considering the history of paper currency.
The current gold price is stable news. There are new highs being reached regularly and many believe that the price will continue to rise. While it remains to see how the price will change, new investors seem to not be afraid to make an investment. Even seasoned investors will continue to buy on dips in gold prices. The past 40 years of prices for gold are clear evidence that gold is volatile. In 1980, gold was worth $800 per ounce. Today’s gold price hovers around $1350, and it seems to be on the rise.
For a variety reasons, the gold price fluctuates. Since thousands of years, silver and gold have been valued as money. These metals have been valued as money for thousands of years. This idea is deeply ingrained in every civilization. Since the inception of trade between cultures, all business transactions were conducted in gold or silver. Many large amounts of gold and silver were the basis for many wars. With their accumulation of silver and gold, kings rose and fell.
On the other side, the American paper currency has existed for less than 300 year. After a certain point, paper currencies become worthless when there is too much of them in circulation. If that happens to a dollar, then those who have gold and silver will be prosperous while those who have paper money will lose all their value.