[gravitronic]

It may be interesting to compare growth VS gold.. but is it standard to compare against the price of gold?

I know nothing of valuation, but by that logic the price of gold would never be worth more.. than.. the price of gold?

I thought you'd value the gain in the market currency, aka dollars. No?

[wintersFright]

People price things in gold as there is a roughly known and finite quantity either in vaults or in the ground. USD's however have no upper bound and can be conjured into existence as 1's and 0's.

Remember there are three functions of money

1) Unit of account 2) Medium of exchange 3) Store of value

Currency is not a good store of value - it can be printed at will. It does store value over a short time frame but if you were given a box from 1930 that inside held somones life savings from 1930 - would you wish it to be in USDs or gold? Hint: USDs is the wrong answer! Currency is an excellent medium of exchange. You can buy food at the supermarket with it. Just don't save your surplus wealth in it.

Gold is used as a store of value instead of orange juice concentrate since it has historical value, it is fungible, divisible and inert (ie: it won't spoil). Also you are not impinging on the economy by hoarding it as a store of value since it has relatively little utility otherwise.

If you think gold is not valuable because you cannot excahnge it for food, then ask yourself why the US Government banned its ownership in 1933 for citizens and why the Euro has it as its number one asset on its consolidated financial statement - above all currencies - including USD http://www.ecb.int/press/pr/wfs/2011/html/fs110706.en.html