Value Of Gold

The value of gold in England for 152 years shows the comparative amounts of other commodities that could be bought with an ounce of gold. The value of gold has never been even approximately stable for more than a few years. The changes in the amount of goods that could be purchased with an ounce of gold in the United States have been much the same as in England. If a country is not maintaining the legal price of gold, the price of gold in its currency is the market price in markets where both the currency and gold are bought and sold. The value of gold is its buying power for other commodities, just as the value of wheat is its buying power for other commodities. The supply of gold is measured by comparing the world monetary stock of gold with its normal relationship to the total production of all other commodities.