Is the value of gold increasing or just the price? It seems to me that VALUE of gold is intrinsic to it based on its usefulness. The PRICE is a measure of what a person is willing to trade of his currency for that item. Therefore the lower the value of the currency, the more it will take to trade for the gold. If the demand for the use of gold has not increased nor has it become more scarce, yet the price continues to rise, then that would seem to indicate the value of the currency has decreased relative to the gold. Rising Gold prices could be the “canary in the mine” warning us of the increasing prices for ALL goods and services in the near future. The cause of the decreased value of the dollar is that the debt ratio is ever increasing. For every dollar we borrow to cover deficient spending we decrease the trading value of the dollar and prices rise. The value of the dollar is decreasing. The PRICE of gold is only increasing relative to the dollar, not the demand for its usefulness .
