Quote:
Originally Posted by jamesqf
Of course it's hard to find any fixed reference standard, but when the price of gold goes up against all currencies, not just the dollar, and the price of your loaf of bread or bowl of rice stays pretty much the same in your currency, then it's a pretty good bet that its the price of gold that's changing.
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Back when gold was priced at $400 per oz. the price of both a loaf of bread and a pound of rice was much less than it is now. The correlation of rise in price between precious metals and other commodities not always immediate, but over time it applies. If your paper money doesn't buy as much as it used to, that's a loss of purchasing power, which is inflation.
There's an old saying: "some know the price of everything and the value of nothing."