Deutsche Bank has recently confessed to rigging the price of Gold. This has the internet conspiracy brigade in a flutter of righteous ‘I told you so’.
It is disheartening, but understandable. Most of us talked about the ‘price of Gold’ at some stage, without grasping the inherent illogic of the phrase.
It is tosh nevertheless.
Gold is the measure, not the measured.
Of course it is possible to discount the value of the US$, or any other debt note, and by so doing push the dollar ‘price’ of Gold up, or to overvalue the currency and push the dollar ‘price’ of Gold down, but what is not possible, and never will be, is to alter the value of Gold. Gold has a stable value; that is why it is the measure of value.
One can lie in the garden sunbathing at midnight, but such an action cannot manipulate time. One can pretend that a bag of dope is any weight that one can get away with, but it does not alter the scales. One can imagine that a twelve-inch-high fence is a yard high and even convince others that this is so, but a yard measure is still a yard long.
Every science must have a stable measure; the monetary science is no exception.
Gold’s stability of value ensures that it is, and always will be, the only money.
Money measures all value, including fiat currencies. Only the deluded use fiat currencies to measure money.
“Facts do not cease to exist because they are ignored.” Aldous Huxley