To understand Gold, or the power of Gold, you need to first understand the value of an item. Let us pick a Horse.In 1875 you could buy a basic horse for a $20 "Double Eagle" gold piece. This was 1 ounce [.98 oz] of pure Gold with the face value of $20.00. The Horse was nothing special. Not a race horse or show horse...just a horse.
Today you can buy a similar horse for about $1,000. Money, specifically US Dollars, have inflated. The same $1000 will also buy 1 ounce of gold in the form of the Gold American Eagle coin.
The value of the Horse and the Gold remained the same for over one hundred years while the value of the US Dollar changed due to inflation and money supply mismanagement. The Dollar is just paper and of very little real value.
The current over spending in Washington on "bail outs" will result in more inflation and greater devalue of the US Dollar. If there was ever a good time to buy gold, it is now. Soon it will take $20 dollars to buy a gallon of milk. At that point one ounce of Gold will be worth $2,500.
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