Monday, May 11, 2009

Diamonds vs Gold

Diamonds are forever, but gold is money. If you think diamonds can provide a better hedge against the falling US dollar, just watch this clip from Bloomberg. Diamonds are a luxury item so the economy worsens diamond prices fall and  gold and silver rise. You can look at it this way. Gold never changes in value, but the various currencies move up and down relative to it, i.e. gold = money.

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