Business Gold

In the 1930s, known as the dark period of world economy. Great American Despression. Try to see the movie "Cinderella Man", a movie that tells of a light weight boxing champion who was forced to eat just have to wait in line. It was a severe economic conditions.

These conditions are compounded by the existence of World War I so many people willing to fight rather than work. After all, there are no jobs available.

To overcome the economic gloom dikala it, then made and signed the Bretton Woods agreement in accordance name of the hotel where the agreement was signed.

One of the contents of these agreements is to restrict the printing or production of currency, if not accompanied by sufficient gold reserves for the country concerned.

Although in the end this agreement is terminated by the Americans in 1971, but one conclusion obtained is "The Mother of all money is GOLD". (Parent of all currencies is gold). This is what makes the importance of gold in the world of the modern economy, post-Great American Despression.

Business Gold Business Gold

GOLD VS WAR

There is one golden behavior that almost always happens. Any uncertainty in the economy, then the price of gold will always skyrocket. Facts on the contrary, whenever there is certainty (read: economic conditions that continue to increase) then the gold price will decline.

Thus, whenever there is war or threat of war, then the price of gold will skyrocket. Talk of war here is not just about guns and bullets but also uncertainty in the economic field. If we trace it towards the gulf war in August 1990 can be seen the price of gold reached its highest point in the level of 415US $ / Troy Ounce. In 2008, when he started a war against the Subprime Mortgage crises, the gold also began to skyrocket and penetrating up to the level of 1000US $ / Troy Ounce upwards. The condition of this uncertainty continues to persist today.

GOLD VS GOAT

Intellectually already discussed about the gold. Let's consider the following analysis. There is one indicator of a quite remarkable about that is enough to compare the gold price gold with a goat.

Since the time of the Prophet Muhammad, the price of 1 head of goat equivalent to 3 grams of gold. If gold is currently in 1150US $ / TO and 1US $ = Rp.9450, - then 1 gram of gold equivalent to Rp.350.000, -. And based on the latest info after the feast of sacrifice goat prices currently around Rp.800.000, -. It can be concluded that to obtain a goats needed only 2 more grams of gold. Even this means that gold prices are still too high when compared to the price of goat.