By Hugo Salinas Price
December 4, 2012
"It is a mistake to attribute a price to gold.
"What is in question today – and has been in question for a century – is not the price of gold, but rather the price of the dollar, and in turn, the price of all the fiat currencies of the world, which are nothing more than derivatives of the fiat dollar.
"The price of the dollar today is 0.01835 grams of gold. That it to say, it is less that two-hundredths of a gram of gold; physically, a tiny speck of gold. We have to turn the popularly quoted “price” of gold around: at $1,695 dollars for an ounce of gold.
"If you want the price of the dollar in ounces of gold, take $1 dollar and divide it by 1695 = 0.0005899 ounces of gold. In other words, slightly less than six ten-thousandths of an ounce of gold will buy you a dollar.
"Since gold is the numeraire – the substance which prices all fiat currencies – it is not the price of gold which is fluctuating ..."