A friend commented to me recently that the price of gold had gone very high. I responded by say, “No, I don’t think so. The price of gold is the same that it has always been. It takes one ounce of gold today to purchase one ounce of gold and that is the way it has always been.”
My friend looked at me as though I was being a little eccentric. “But,” said I, “If you are talking about buying gold with paper then you better have a bundle handy. For one ounce of 24K gold today cost $1545 USD. And if you want to purchase that gold with basmati rice then you will need about 1500 kilos of rice for one ounce of gold.”
Gold is gold — always has been, always will be. It is the paper that is becoming worthless, not the gold that is becoming expensive. Presently paper money is worth less than ever before in human history.
Two things to remember, as my Guru Mahārāja once said, “Gold is money, and cows and land are real wealth.”