Wow, the value of my stocks went up! Wow, the value of my gold in the basement safe went up! That sounds good, but is it really good? Probably NOT!
The value of the US DOLLAR determines the ratios that in turn provide the daily values of our assets, especially things like gold or commodities that trade in DOLLARS.
If the dollar loses value, the gold you hold has to cost more...because the dollar is now worth less! So did it really go up?
Just because prices are going up, we have to consider if the value of the dollar has in fact decreased and therefore we are not really ahead...just keeping up!
Those financial indicators sure can be tricky as traders in the entire world watch for price anomalies.
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