re: Gold...why is it down?

quote:

---

though not active in the economy - does not devalue the relative value of money, and create rise in the demand for real stores of value?

---

In the long run it certainly does. In the short term you'll obviously see fluctuations. Also, remember other central banks are devaluing their currency too. If their currency devalues at a higher rate than the Fed the net effect is a stronger dollar especially where we are direct trading partners with those countries under those central banks (bank of china, japan, ECB).

I'm sure you get a much more informed answer form the likes of Russian, Poodle, Fizzle, Flask, Fenton, or Benny, but there's my $0.02.