Our money is fiat. That means it isn't backed by anything. Literally, it's just paper. The value lies in the belief that the paper is valueable. Our currency used to be backed by gold. That limited the money supply and thus, kept it higher in value. Without anything backing it we can print as much as we want, but we also run the risk of inflation & hyper inflation a.k.a. social chaos.
Now, since 2007 gold's value is up, way up. Up as in upwards of 400%. However, gold honestly doesn't gain nor does it lose value. It has maintained a steady value for thousands of years. Gold is "up" because we're pricing it in dollars.
When the value of a dollar is down, gold goes up because it takes more dollars to buy the same amout of gold.
With that in mind, read this article here
Zero Hedge
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