Compared to The Gold Dollar is Nothing More Than a Piece of Paper

Compared to The Gold Dollar is Nothing More Than a Piece of Paper Many people I know of course, those who are also dabbling in the stock market and futures exchanges and very caring towards sustainable trade amounted to U.S. $ price of gold and the Dollar Index, they would realize they were the opposite direction.
Why does this happen for a reason right? Basic reason for the gold and the dollar was in complete opposition is in fact more than just a gold coin. This is traded on global markets as money, and for this reason, the dollar loss of value in the foreign exchange market during the duration prolonged. During the same period, gold prices are expected to get a ride. At this point, the fact can not be ignored that when the dollar ever gain back its value, even if after many months, gold prices will decline. although the decline in the value of gold is very small.
Try our attention each time the chart or graph of the dollar and gold are compared, large differences become clear, together with the fact that both have been correlated currency reverse since the system came into being around the early 1970s. And this is an irrefutable fact.
Many people including myself regarded as a form of gold of any long-term hedge against inflation. This will of notes be a very long period of uncertainty will from trigger an Increase precious metal prices. Were there an inverse link Between the precious metals and U.S. Price Index Dollar Index. World Gold Council, and even supported the fact That they want both share an inverse relationship.
 
Once there was a unique experience, during the recession the U.S. Dollar, usually appreciate in value and cost of silver, platinum and palladium are usually face a decline. There was a recession period when gold and U.S. dollar appreciates together, and that helps fail in inverse relationship to short-run. However, over the long term, this inverse relationship does not lose grip and reciprocal trend continues.
On the basis of experiences and events above, these points show rather than gold as a long-term hedge against inflation. This is very clearly put forth the fact that gold spot, unlike metals such as silver escorts, platinum and palladium, are clearly a short-term security hedge against recession and decline. Yes gold effectively protected from inflation mechanism
Gold definitely has a clear advantage over the U.S. Dollar in the global spot gold market because consumers tend to be profitable in the long term. Not to lose its value when the dollar gains back its value. Gold has a side benefit is still lagging, and the fact that when gold reached its peak, the dollar is nothing more than a piece of paper. Because of these reasons is, they both share a reciprocal relationship in which one side or the other benefits suffered. However, both are commodities that investors do not refrain from inward investment. and this is why we must choose the exposure of gold in our long-term investment.