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leonardo leonardo
Member since:
March 09, 2009
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What is the connection between Dollar and Gold..........?

Please answer the perfect strategy.
  • 3 weeks ago
Bad bus driving wolf by Bad bus driving wolf
Member since:
June 08, 2006
Total points:
12507 (Level 6)

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There is a limited amount of Gold. Yes, people continue to dig it up, but that isn't a huge amount compared to the amount we now have, so basically we have a limited supply of Gold.
Dollars, on the other hand, are limited by what others think the US will earn. If they think the USA GDP will be better than in the past, then borrowing is easy and so there are more US Dollars, conversely, if they think the GDP is going to be less than in the past then they won't lend and then there are less USA Dollars.
  • 3 weeks ago
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