dbbennett

Beware of Pricing the Market in Terms of Some Commodity

i would submit that pricing the market against gold which is money is not the same as pricing it in terms of a commodity. The price of a commodity is dependent upon its utility and scarcity relative to other things. Gold has no purpose other than its role as money.

Finally, by comparing the value of the market against something immutable and unchanging as gold provides a means to establish the change in the market's value since the denominator (i.e. gold) is constant.