I was just reading some answers to a question someone posted earlier about Gold retreating.
The answers which followed suggested that the US dollar and Gold are linked in terms of which way they go (up or down). This made me think… Why would people bet on Gold falling if the dollar is falling? I mean Gold is a rare and valuable metal. I’d think it would be inversely proportional to the dollars value. Doesn’t it make more sense that gold should go up?
If I invested $20,000 in gold. And the dollar fell, why wouldn’t gold go up? It’s a commodity which is sure to remain high in value around the world isn’t it?
Which brings me to another question… If gold falls when the dollar does, whats the point in having the bullion depository?