Gold not money?
Recently (and already infamously), Ben Bernanke asserted that “gold is not money.”
The markets speak in actions not words, and the markets are making pretty clear what they think of that assertion. This is a chart of the last 6 months, Gold vs. Euro vs. US Dollar. The Dollar and Euro are measured against one another (along with a basket that involves other Fiat currencies). Note that the USD (after a pronounced year-long slide) attempted to bottom and rally… rising support, only to break to the downside last week. As the Dollar rallied, the Euro has been steadily declining. But, even with the Dollar’s fall last week, the Euro has been unable to punch through upside resistance. How has gold handled it?
Which of the three would you like to have determining your purchasing power as “money”?
Ahhh… Uncle Ben. Stick to making rice.