I normally laugh at these gold bug, "the sky is falling, gold is going to $50,000 an ounce" type articles, but I thought this arguement was interesting: http://www.gold-eagle.com/editorials_03/hommel110603.html From 1998 to 2003, M3 has jumped from $5,700 billion to $8,900 while gold has gone from $296 to $390 an ounce. Since 2001, gold has gone up faster than M3. This means the value of money is going down faster than the rate at which they can print it? The US stockpile of gold is estimated at 260 million ounces (Fort Knox). When you divide current M3 by the gold price, it means the US dollars can buy 22 billion ounces of gold. Yet there are only 3-4 billion ounces of gold in the entire world!! Could you conclude then that since coming off the gold standard, the US dollar is currently overvalued by 500-700%? I know that numerous countries in history have debased their currency, gotten off gold or silver standards (the Romans using less silver in their coins at the end of their empire, etc). But I wonder if any country in the world has had this large a gap between fiat currency and actual hard metals to back them up. To think that you use to be able to exchange a US dollar for actual gold seems almost unimaginable. This house of cards is going to crash sooner or later.