From being valued at $100 an ounze in the 70’s to becoming almost $3000 an ounze now, gold has become more valuable than money as time goes by. This is caused by consumer’s mentality that gold is one of the highest commodities and “medium of exchange” in our markets. Exchanged throughout the world, gold may seem like just a shiny yellow metal, but it is capable of creating prosperity for nations or causing great depressions for countries. In the article, ‘Gold prices‘, it demonstrates the importance of time towards the growth or fall of money. Linking to our class 6 lecture of time value of money, I was able to find immense interest in this reading due to the fact that I was able to connect the terms of present day and future day value onto the prices of gold. Presently, the buying price of gold is viewed at $1500 to around $1900. On the longer-term uptrend as early as 2014, the market may rise to ‘a stronger rally to $2050-2300 and up to $3000’ (Lynch, 2012). From these numbers and the denotation of the term time value of money, I am for certain that investing in gold will definitely pay-off in the future.
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