One of the things that is frequently misunderstood about the price of this new alternative currency is its ability to be compared to gold, in terms of a charting methodology. The answer to this question is “yes”, but it depends upon how this comparison is being made.
For one thing, there really is no comparison, because this kind of comparison requires a completely different analysis methodology from those used for conventional currency. When you use the conventional currency approach to compare currencies, then you are basically comparing apples and oranges – not apples. It is important to recognize this when you compare gold and other traditional investments.
When you compare gold and other traditional investments, then you are comparing two very different concepts. You are comparing the price of gold to the price of the government or the central bank printing the currency. In other words, you are comparing a price in terms of a commodity like gold.
In a very different asset classes, such as real estate, oil, and stocks, you would compare the value of an asset to the value of the government or a particular company. The price of a commodity can be compared to that of another commodity. For example, if the price of oil is increasing, the cost of oil can be compared to the cost of that oil by looking at the price of another commodity that could compete with oil.
So, why do we make the comparison between these two kinds of investments? It is very simple, because in the case of the real estate market, we have a situation where there is a central agency like the government or a particular private company printing money and then using that money to purchase real estate from people, such as individuals and organizations.
Then there is another investment, which is the purchase of another asset that is going to provide real-estate with a market value that is greater than the amount of money that was previously spent. In essence, then, what we have is an investment that is being used to buy a commodity with a higher value than the currency it is being bought with. In this case, this would be considered a kind of “demand” for that commodity.
However, there is one difference between this case and the situation involving a commodity, such as oil, and this is that there is no central agency, such as a government, or a company, that has the power to dictate the price of that commodity. On the contrary, it is up to the consumer. People are the ones who make the price of oil go up or down; the consumers are able to pay more or less for the commodity based on their needs and circumstances.
In conclusion, a good analysis for a new investor should approach this new investment as if we were looking at investing in gold-like status and value. We need to look at this new asset in terms of both demand and supply. In this case, we need to understand that it will be very hard for us to control the prices of this new commodity, but that it is very easy for us to control the price of the old commodity, especially if it is something like gold.