Here I have data of gold price after Nixon unilaterally abandoned gold standard I 1971. In fact gold price began to rise in market since 1968. More and more US government spending abroad to fund military expenditures and investment had drove out dollars outside USA. So many countries demanded Uncle Sam ‘promise to pay’ (according to Bretton Woods agreement about convertibility US$ to gold), French did asked this and did acquired a large amount of gold.
First, I tried to fit this data to a curve using curve fitting method (using numerical analysis). But I stopped in the middle of process because it was too complicated. Fitting it to three degree polynomial equation needed us to solve linear equation with four variables. The integer is too large, made me chose to stop.
Well, coarsely we can see now that the chart is similar to three degree polynomial equation (cubic). This does not mean that gold value is increasing, it is just fiat currency has been losing its value. Post Bretton Woods, dollars value is getting worthless. And may be next year the value will be falling uncontrollably.
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