All That Glitters is not Gold
But boy does gold glitter now!
I have a pair of gold cufflinks that weigh 3 grams, which on my calculation represents just over $200 in raw material today. When I bought them in Hong Kong about 60 years ago the gold price was fixed at $US35 an ounce.
Some “experts” are predicting gold to rise to $14000* an ounce but a troy ounce is heavier than our 16 ounces to a pound. I don’t think I’ll be buying any more gold cufflinks! Gold jewellery looks very attractive but I defy anyone except an expert with the right tools, to tell the difference between 9 and 22 carats, certainly not just by looking.
The “gold standard” used to be applied to all currencies to determine the relative values of currencies - for example, the French and Belgian francs. That all changed when it was replaced by the US dollar as the determining standard.
There are still some amateur economists who think gold is the only “money” but it’s interesting to observe pallets stacked with gold bars being wheeled from one side of a bank vault to the other to satisfy a trade debt between countries.
This still happens!
*The price of gold in Australia today? About $2500 per ounce.