Note that the price of gold does not depend upon transaction volume.

FORBES: Our Schizophrenic Fed

First, US currency as it was used for 99.9% of economic transaction was never tied to the BWS much less gold.

FORBES: Our Fiat Dollar Has Cost the United States $80 Trillion

Speculators prefer their gold in the form of exchange-traded funds such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) rather than in bullion because of their low transaction costs, liquidity and the ability to margin their holdings.

FORBES: Sober Reasons To Own Gold

Accordingly, the level of aggregate demand (the transaction rate in the economy) does not directly affect the price of gold.

FORBES: Our Schizophrenic Fed

The boards of both US Gold and Minera Andes have formed special committees of independent directors to consider the proposed transaction.

FORBES: Update: McEwen Proposes Merger Of US Gold, Minera Andes

One ounce of gold now buys 5.1 times as much Dow index has it did in mid-2000, ignoring transaction costs (first into cash and then into stocks).

FORBES: Either Stocks Are Cheap Or Gold Is Expensive