How to grow your wealth during the coming collapse?

GOLD’S BULL MARKET ISN’T OVER 149

in dollars. It is also true that the value of a dollar may change
when measured in euros or ounces of gold. But these changes
in relative value do not turn these units into investments; they
just reflect supply and demand for different forms of money.
If holders of euros have a preference for dollars, the euro
may fall relative to the dollar. If holders of dollars or euros
have a preference for gold, then the value of gold may rise
relative to both. Still, these changes reflect changing prefer-
ences for different forms of money, not a return on investment.
While gold is money investors frequently ignore the fact.
Gold often trades like an investment and is said to be “up”
or “down” in dollar value, the same as a stock is said to be
going up or down. Gold also trades like a commodity; in fact
the primary trading venue for paper contracts in gold is the
Commodity Exchange or COMEX. In that context, gold typical-
ly goes up in dollar terms during inflation, and down in dollar
terms during deflation, just like other commodities including
oil and copper.
That’s why the chart below is so fascinating. It compares
the price of gold to the Continuous Commodity Index, an index
of major commodities that has been maintained consistently
since 1957. The index includes gold, copper, cotton, crude
oil, natural gas and twelve other widely traded commodities.

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan ‘15

2014

15.00%

12.50%

10.00%

7.50%

5.00%

2.50%

0/00%

-2.50%

-5.00%

-7.50%

-10.00%

-12.50%

-15.00%

Gold

Continuous Commodity Index(GCC)