Skol, People do need US$ and A$ but what are they worth and why does the value of each change, sometimes by so much People do need gold, for different reasons, jewellers need gold because their customers want gold jewellery (do not get me started on diamonds, the biggest rip-off since Adam)
For personal reasons you had US$ and traded for Euro's if you live in Aust people could question why have US$ they are about as tradable as gold, I cannot go to a supermarket and use gold or US$, I can find places that will exchange them for local currency, so about as much use as each other, unless you are in a country where you can buy a burger with them.
As far as how to value it, what the other person would pay, when you went to exchange your US$ you knew what they were worth at that time and accepted what was offered. Why did you not hold out for more..... you knew what you were to be paid. Why do exchange rates change so frequently, buys and sells.
The price of gold is valued constantly, and is only based on buyers and sellers.
Why did CBA shares increase by over 1% yesterday ??? Did the bank make some good deals that day so the profit will increase, no just more buyers than sellers.
It is not a complete answer, however the price of gold will decrease when there are more sellers than buyers.
