The Flip Side to the Gold Price - The US Dollar Index

Here is a chart of the US dollar against a basket of foreign currencies. The currency or the stock of the USA, measured against the stock of other countries. Is it a coincidence the Federal Government stopped publishing the amount of shares they were adding into circulation also known as M3.

It is no wonder that oil, commodities and precious metals which are finite items in supply show strength in terms of US dollars, when there are no limits to the quantity of US dollars issued into circulation. You can see with just unchanged demand the value of hard assets measured in US dollars must rise.

Gold however, is in the transition from a commodity/currency to strictly a currency. During the next leg down in the fiat US dollar, GOLD, I believe will start to regain its credibility as REAL MONEY among all generations once again.