The reason why I ask this is because, with the current situation of dollar devaluation and gold's increase in price, it seems like there is a direct relationship between the performance of the dollar and the performance of commodities in general. So: Does that mean that the dollar operates upon a supply-and-demand basis like commodities? More dollars in the market, the less valuable they become? Or, Is the devaluation in the dollar caused by the lack of investment in US Bonds due to the increase of the money supply/US Deficits, which people then buy things like gold which still operates on a supply-and-demand model? I saw a chart and it sparked this question.. maybe a little bit of both?
Commodities climb into bull market... Asian stocks rise as commodities climb into bull market Tue, 07 Jun 2016 - Asian stocks are rising after commodity prices jumped by more than 20% from their January lows to climb into a bull market.
Give everyone a million bucks and see how they aren't able to buy their Ferrari. The value of the dollar necessarily scales with production.
