*** Kitco launches index to measure "REAL" gold price ***
By Jan Harvey
LONDON (Reuters) - Montreal-based gold dealer Kitco has launched an index tracking gold in a variety of currencies, that it says will enable investors to monitor prices independently from the U.S. dollar.
The Kitco Gold Index, launched late on Tuesday, follows the price of gold with the same basket of currencies used for the dollar index -- a mechanism that measures the U.S. unit against major currencies.
The components used for the dollar index are the Japanese yen, euro, sterling, Canadian dollar, Swedish krona and Swiss franc.
Spot gold and U.S. gold futures, both of which are priced in dollars, have gained ground in league with the U.S. currency's losses. Gold hit a record high earlier on Wednesday at $1,048.20 per ounce .
But gold priced in other currencies has seen nothing like the same sorts of gains. While the precious metal has gained almost 20 percent in dollar terms so far this year, gold priced in Australian dollars has fallen 5.6 percent .
Kitco said its index aims to determine whether the value of gold is actual, a reflection of changes in the dollar value, or a combination of both.
must have a Zero Time Point to work - Right ?
a = b
b = c
then a = c
So the index has no meaning as pure index.
If we had a zero time point (like when the USDX started) then I see its value over time.
I WANT TO SEE the DJIA in the USDX basket of currencies over time - that would be an interesting number.
EDIT:
(It looks like Kitco did take the time value into account in its GRAPHS - SO THE INDEX IS NOT REALLY AN INDEX - In that they reset the starting value relative to your current date and time.) - Thus it is useful and does what they report - just never look at the actual numeric value of the index.
Does not compute
So basically this is just an index with the $ Dollar taken out of the equation. That doesn't make sense. How can you ever take the $ Dollar out of the equation???
Note: The "buy gold" rhetoric
Note: The "buy gold" rhetoric is switching to "when to buy and sell gold".
What's that writing on the wall?
The writing on the wall is that fiat currency is dommed.
The great global experiment in total fiat money that began in 1971 is starting to unravel.
This is really cool!
Thanks for the heads up!
Ron Paul's Convention Speech
This looks like it will be
This looks like it will be quite useful. Makes it a bit easier to distinguish gold price fluctuations between USD going up/down versus supply/demand with gold itself.
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John.. its bunk.
John.. its bunk.
“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul
I'd like to take your word
I'd like to take your word for it, but can you explain specifically why you believe it's bunk?
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see hawaiian dude above.
see hawaiian dude above. You also have derivative markets or paper gold.
“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul
I think this is one of no
I think this is one of no nads nadlers way of diverting attention away from the real reaso gold is rising. I hate that stupid index.
“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul
Bingo! Yes, it is nothing but more anti-gold disinformation
I HATE the recent and almost ubiquitous use of that virtually-meaningless "dollar index", because it does NOT measure anything but how the dollar compares to other, simultaneously-depreciating fiat currencies. It does not have ANYTHING to do with the actual, absolute purchasing value of the dollar, which is invariably and always FALLING! However, the establishment talking heads and bankster shills like Nadler like to use it to distract the gullible and divert attention away from the CPI (corrupted as it is) and other measures that would in fact show that the value of the dollar is on a one-way trajectory: downward.
Anytime you see the "dollar index" being used to talk about the "rise" and fall of the US dollar, be instantly on your guard, because you are almost certainly about to be lied to.
exactly.. it is a bunch of
exactly.. it is a bunch of bull.. the only reason I visit kitco is for the graphs, and current info. I never read nadless nadlers essay of the day. The man is a fool.
“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul