Gold is still cheap

See this chart comparing gold to the inverse of the U.S. Dollar Index, a chart of gold versus a basket of foreign currency.

Your gold buys a lot more today than it did almost 5 months ago, when gold hit its peak in U.S. dollars. If you view the world through golden eyes, it is doing very well as an investment. However, in U.S. dollars (or renminbi, for that matter) it is not so expensive.

I view the euro and U.S. dollar as two ends of a see-saw. The value of each goes up and down, up and down, but within their range, they're staying in place relative to the Earth. Meanwhile, each time the see-saw swings, gold ratchets up another notch, moving farther away from the ground. U.S. dollars are climbing now as the euro falls, so much that in the eyes of a U.S. dollar holder, gold appears to have dropped. But from gold's position, it is absolutely farther from the ground.

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