The value of the dollar relative to the value of gold. As the dollar loses value, gold gains value. Why is this the case?
In: Economics
Gold and precious metals are considered very safe investments and an alternative in a down market. So when things are bad, people buy gold. When things are good, they sell that gold and go to other investments.
It gives a pretty simple function: Dollar down, buy gold to compensate. Dollar up, sell your gold, times are good.
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