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Good as Gold

The price of gold in Australia is nibbling at the magic $2000 an ounce. When I studied economics and even when I had enough money to buy things made of gold the price was locked in at the “gold standard” of $US30 an ounce.

I think I had my gold crown inserted after the price of gold was floated and I wonder if I should leave my tooth to a charity in my will. $2000? I’m sure my crown weighs at least an ounce!

If you have “wealth” this usually means possessions, including money, with significant accumulated value. If that wealth can be put to work to sustain a lifestyle and/or to promote growth, it has real value.

Gold is an exception, but even that is arguable. A kilogram of gold bought in 2000 still may weigh a kilogram but it’s now worth more than twice its value at the turn of the century.

Is this growth or simply a measure of inflation?