What is GOLD TODAY

GOLD TODAY is an informational and education website designed to inform people about gold. It covers a number of aspects about gold including how to buy gold, how to sell gold, information for investors of gold and even how to prospect for gold.

It is not difficult to see why Gold is such a favorite with men and women over the years. It does not tarnish or rust but remains shiny and golden. It keeps its value. The economy may take a dive but gold remains steadfast and true relative to the value of other goods and services. The decline in confidence in world currencies contributes in no small way to the continued popularity of gold. With the advent of the internet, the transfer of funds by the use of gold has now become big business. Millions of dollars worth of gold are moved around the planet literally at the speed of light and Asia, of course, never did lose its focus on the value of gold both economically and culturally.

From the 1800s to 1975 the price of gold remained fairly steady at 19 to 21 US dollars. In 1975 the gold standard was removed and this, along with other factors, contributed to the increased fluctuations in the price of gold. The dollar was originally pegged to gold in March 1900 and the dollar was then "backed" by "twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine." This was set as the standard unit of value. The value was then set at $20.67 US. Per ounce of gold. Consequently there was little movement in the value of the dollar, being pegged to a stable metal. The dollar and the economy were fairly stable for many years.

In 1975 the United States floated the dollar with respect to both gold and other currencies. With this the United States was, for the first time, on a fully fiat currency and the dollar was no longer pegged to gold and there was, in effect no gold standard. Today the dollar, like the currency of most nations, is fiat money without intrinsic value, which means that it has no backing and would be entirely worthless but for the fact that people have been persuaded to use and accept it as if it had worth or value.

After the gold standard was dropped the value of gold shot up to peak at over 640 dollars per ounce in 1980 before settling in the 300 to 500 range. Since then the value of gold has periodically shot up again so that, at the time of writing, it is trading at between 800 and 900 dollars per ounce and looks set to increase in value to well over 1000 dollars an ounce in the long term. An extraordinary sum of money for one ounce of gold you might think. Some economists consider this is due to a weaker dollar, higher oil prices and an unstable economy driven by the creation of more money to handle the economic problems resulting from creating paper money to handle prior economic problems and so the merry go round continues. Since the drop of the gold standard and the manipulation of the economy by simply printing more money to resolve financial and liquidity issues, the economy has continued to suffer with alternating waves of inflation and depression or recessions. Currently at the time of writing, a worldwide financial credit crisis is in full swing with no immediate end in sight. Gold however, like a bright enthusiastic child, continues to have value and although the "price" fluctuates more due to the manipulation of the dollar than anything else, the value of gold remains relative to products and services, remains stable.

So, in point of fact, it could be said that the value or price of gold is not changing. Only the dollar value reflected to it, the fluctuations of the value of the dollar and the vagaries of the political and economic climate. The US dollar is now in the doldrums as, over the past years, currency has deteriorated with the massive printing of paper money. This has resulted in a lessening value of the dollar, higher inflation and other subsequent effects.

Meanwhile gold has continued to rise against the dollar and other currencies as more confidence is placed in good hard sold gold than in a paper money that is becoming more worthless by the day.

Your first port of call is the What is Gold? page.

Here's to lots of lovely gold!

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