Originally Posted by XSapper
Is gold worth more or the $ less?
Mostly, the dollar is worth less.
The price of gold is the worldwide average of what people are willing to pay.
Since the amount of new gold added via mining is small, you can treat gold as a fixed resource. It doesn't have to be gold; anything that's rare, expensive to produce, and hard to counterfeit would work just as well. Diamonds, original Elvis Presley LPs, or moon rocks would be examples.
An increase in the price of gold in $US doesn't necessarily mean the US economy is failing; it could mean that other economies are improving. Mostly the former at the moment, I figure.