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Gold is one commodity that really reflects the changes in the prices of goods over time. This is the conclusion of a brief study on prices back in 1908 by Chris Laird, math teacher and certified Oracle database administrator, publisher of Prudent Squirrel newsletter, an economic and gold commentary. Laird explains he chose the year 1908 because of data availability and includes in his commentary the example of the loaf of bread that was 10 cents in 1908-1930 and is now 3 dollars, which is 30 times higher. The price of gold is now roughly 30 times higher.

Protection of investments against inflation as well as real benefits from capital growth have become unsure for those of us who need to make solid investments, due to the troublesome contemporary world context. To a slighter degree, the recent world crisis has affected even those advanced economies which did not suffer its direct influence. But further decrease came out of the blue in the case of Japan.

When referring to stock market indexes, we have to mention that this type of index is used in order to measure the value of a group of stocks. Such an index is strongly related to the value of stocks and once the stock changes its value, the index follows the same path. The most common and major indexes are made up of stocks, but they might also refer to bonds, real estate and others. If you want to look at an index number, then you should compare it with a previous value, so as to follow its evolution and to make a possible comparison at the same time.

The demand for gold has started its rise back in 2010 and its seems that now, in 2011 it has not stopped. India and China are two of the major factors that have created this high demand for gold.

From a macroeconomic perspective, the global situation looks nothing short of catastrophic, the US being confronted with a failing dollar and a steady recession due to its massive debt, the Eurozone with a weaker Euro due to the debts of Ireland or Portugal, and all the countries with the increase in oil rates caused by the war in Libya, and therefore with a higher inflation. As such, the dollar index had decreased in the first quarter and, though inflation in Europe was of only 2.6%, the Euro is still in trouble.

The global economic background is extremely under pressure nowadays owed to the calamity that hit Japan. The result of the heartbreaking Japanese tsunami and nuclear explosion was materialized in numerous deaths and also in a rise at the level of fuel prices. All states are affected by this rise from both economical point of view and that of the general consumer.

Natural catastrophes can occur without any warning, worldwide and any moment. They have a dramatic effect on people, not only on the people from the places where they happen, but also on the people from other countries, mostly from an economic point of view.

Given the enormous appreciation of gold from $250 an ounce in 1999 to $500 an ounce five years ago and $1,452 an ounce presently, it’s no wonder that there are so many proponents of a gold bubble, particularly after witnessing the stock bubble ending dramatically in 2000 and the real estate one, ending as dramatically in 2006.

The politicians have mainly taught us the fact that their jobs involve making promises in order to please the masses. Whenever they fail in keeping them they get ironies, parodies and even criticism on the part of the people. But in some countries these polite manifestations of discontentment are simply not enough to wake up these persons or to bring them back to the right track.

While both major foreign governments and China consider the internalization of the Yuan to be unavoidable, the first would expect the latter to meet some conditions, whereas the latter would rather have it happen in its own good time and as it likes it. The French president, for instance, believes that the Chinese currency should be accepted in the IMF currency basket. The US Treasury Secretary is by no means against, though he thinks that certain criteria should be first met. Of course, no one could contest that a country with such an impressive economy and volume of international trade should have its currency included in the international reserve assets. The Chinese central bank itself considers that an IMF basket without the Yuan is presently inconceivable, while the Chinese president thinks that the internationalization of their currency is just a matter of time. No doubt that the Yuan does very well, given that it has been recently appreciated at 6.55 dollars, the highest level over the last 17 years.