There have been many recent news stories reporting that the price of gold has hit $1000 per ounce for the first time. However, every one of those that I've read has gotten the story backwards. Its not that gold has gone up in value but that the dollar has yet again lost value. A proper headline for such stories would read:
"Dollar Drops to 1/1000 of an Ounce of Gold in Value"
You see, its not the value of gold that's changed, its the value of the dollar. When the current president Bush took office the dollar was worth 1/250 of an ounce of gold, a devaluation of some 75%.
Here's a good take on the situation from Paul Craig Roberts
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