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At the risk of lengthy argument, the dollar is unfortunately not a good standard against which to measure the value of anything. A dollar isn't an inch or a meter or a mile. The dollar has lost about 7% of its value of the past month.

http://www.tfc-charts.w2d.com/chart/US/66 (91 >> 84)

and about 30% of its value since 2001.

http://www.tfc-charts.w2d.com/chart/US/M

Clearly, any arbitrary timeframe can be selected to show the relative outperformance of gold to the dollar. And it also depends on what you're buying: a $399 PC today devastates the performance of a multi-million dollar UNIVAC or GENIAC.

I like the analogy supplied by a FReeper (whose name I don't know) which I will steal:

When gas was 29 cents you could buy a gallon of it for three dimes. Those same (silver) dimes today still buy a gallon of gas.

At the risk of lengthy argument, the dollar is unfortunately not a good standard against which to measure the value of anything.

The same can be said about gold.

The dollar has lost about 7% of its value of the past month.

Measured against gold, the dollar has increased in value in the last month.

When gas was 29 cents you could buy a gallon of it for three dimes. Those same (silver) dimes today still buy a gallon of gas.

Just as useless a story as the one about the suit you could buy for an ounce of gold.