An easy way to monitor the economic state is to watch the gold price today. Gold prices could be a simple barometer for everyday citizens as they watch the details about the declining dollar, slow economy, and lackluster growth.
Investors want their wealth to be protected and stored in safe places like gold. So they move their dollars from the dollar to the gold. It is important to consider the history and significance of paper money before making the switch.
The news is consistent about current gold prices. On a regular base, new highs are achieved and many people believe that the price of gold will rise. Although it is still uncertain, investors are not afraid to invest in gold. Even experienced investors continue to purchase on dips of gold’s price chart. If you look back at the gold prices over the past 40 year, you will see that they are volatile. In 1980 gold prices reached $800 an ounce. The current gold price is about $1350 and appears to be increasing.
A variety of factors can cause the gold price to fluctuate. Silver and gold have been money for thousands upon thousands of year. These metals are considered money and have been accepted by all cultures. There were many conflicts over large quantities of silver and gold. The accumulation or loss of silver and gold can make a monarch rise and fall.
The American paperdollar, however, has only been around for 300 years. There has been a point in history when paper currencies had too much money. After that, they cease to be worth anything. The dollar will become worthless if that happens. Those with gold and other precious metals will still be wealthy, while paper money holders will go broke.