Tag Gold as an investment

Rupee And Exchange Rate

Here money you actually have has not increased.

What happens is that you get money from some one who has spare(because his Wants are less than yours) and on a large-scale the artificial money is high when compared to the produce available.

So the city gets things from the next city or where the produce is available.

The hitch is they are also running into the same confusion of artificial money there.

This cycle goes on.

This is exactly what is happening to the World Economy now.

Another point to note is that when you buy from the others as a produce, it has to be valued.

Barter system did not have this problem.

You wanted something which you do not have ,another man has and has no need of it when you ask him.

The question of Money and valuation does not arise.

Thanks to Money Value system, some Value has to be fixed as Values of products vary.

Some joker said God is the standard and fixed it as a medium of exchange.

Who Controls The World,Economy Gold Petroleum

If an ordinary man holds back buying, it sounds silly and foolish of a Banker to buy up when the Price is high.

This is a part of the strategy to drive the gold Price up.

Do you know how the Gold prices are fixed?

"The current five participants in the fixing, who must be members of the London Bullion Market Association, are:

Scotia-Mocatta — successor to Mocatta & Goldsmid and part of Bank of Nova Scotia
Barclays Capital — Replaced N M Rothschild & Sons when they abdicated
Deutsche Bank — Owner of Sharps Pixley, itself the merger of Sharps Wilkinswith Pixley & Abell
HSBC — Owner of Samuel Montagu & Co.
Société Générale — Replaced Johnson Matthey and CSFB as fifth seat