August 30, 2013
Early America and the Constitution
Gold prices are continually raising in terms of worth. The price of gold per ounce just recently jumped up from $1,396 to $1,420, and not to mention it has sustained a rate no lower than $1,212 per ounce for the past three years. Gold's worth is rising because of three main things: Inflation round the globe, of course, Security as a business asset, and the demand for Jewelry is higher than ever, especially in countries like China and India.
I think this is really relevant to what we are learning about in class in terms of the economical side of government. I really appreciated one thing that the writer of this article, Steve Rothwell, said, ""If we lived in a perfect world, we would not need gold," says McGlone. "But since we don't, we do need something that is the ultimate store of value." I might be headed on a tangent by saying that he kinda sounds like John Locke in his Second Treatise on government.
I think gold is like any other product or aspect of our capitalistically driven economy, but there comes a point when I start to think, "Is there something wrong with gold gradually gaining more and more worth? How does that benefit the dollar?" I guess this means I'm asking this question to you.
Why is the rising worth of gold beneficial or why isn't it?
I personally believe that there is nothing wrong with gold prices rising, and that it would be worse if they were falling. Rising gold prices are beneficial especially to the investors that hold gold in various investment forms.
ReplyDeleteGo ld really isn't rising to dangerous levels as over the last year, gold prices have actually been in decline and continue to fall. The prices per ounce are far below what they originally were back in the later half of 2011 - early 2012 before they're fall.
Gold is also an important staple of assets in our government as the U.S. treasury stated a few days ago that they won't sell a single ounce of their $340 billion gold reserves not even to lower the deficit.
Now, there's obviously benefits and dangers in any fluctuation but I view it as just par of a decade long cycle.
~Jiffy Shumway
Gold has been the standard for money for long time. I think that the price of gold rising, is just a following of the current trend. Currently the prices of living and everything have gone up, doesn't it make sense that the price measure everything by should also have rised?
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