0

To give a concrete example:

On day $1$, price of Gold $= 947.257$ GBP $= 1326.647$ USD and GBP-USD exchange rate = 1.40034

On day $2$, price of Gold $= 946.276$ GBP $= 1333.332$ USD and GBP-USD exchange rate $= 1.40903$

It can be seen that in GBP the price of Gold has decreased, whilst in USD the price has increased, which is obviously a function of the change in the exchange rate, but also perhaps indicative of a change in the "real value" of Gold.

Given this, I'd like to infer by how much the real, or intrinsic value of gold may have changed ( can be in percentage, logarithm or multiplicative factor ) without necessarily having to know the price levels of this value. Searching on this site I found this question, the answer to which, intuitively at least, seems to embody the type of approach I should take.

Leyla Alkan
  • 2,451
babelproofreader
  • 215
  • If you think gold has an intrinsic value, perhaps this is constant and it is merely the fiat currencies (and everything you can buy with those currencies) which are changing price – Henry Apr 13 '18 at 14:35
  • I think you want to know the change in value in USD? Or do you really mean intrinsic? – Frostic Apr 13 '18 at 14:45

0 Answers0