Well, this settles it. There is definitely something screwy over at Kitco. Sometimes its hard to spot a rat until you have it cornered and it starts doing desperate things. Either the people over at Kitco are incredibly stupid or vastly underestimate the intelligence of their audience. Read below and you will understand what I mean. A few points to ponder: The dollar is a piece of crap, but it is still the only real game in town. When a currency has world reserve status, it is the representation of gold in paper form until it is dethroned. The Kitco index is a joke of the first magnitude, and anyone who would even look at it deserves to be laughed out of the room. Boy, did that uy Nadler have me fooled. I considered him a person of integrity. The more I look at what he's doing, the more I think he has about as much integrity as a slice of baloney. Read on...

Kitco launches index to measure "real" gold price

Click to enlarge photo

By Jan Harvey

LONDON (Reuters) - Montreal-based gold dealer Kitco has launched an index tracking gold in a variety of currencies, that it says will enable investors to monitor prices independently from the U.S. dollar.

The Kitco Gold Index, launched late on Tuesday, follows the price of gold with the same basket of currencies used for the dollar index -- a mechanism that measures the U.S. unit against major currencies.

The components used for the dollar index are the Japanese yen, euro, sterling, Canadian dollar, Swedish krona and Swiss franc.

Spot gold and U.S. gold futures, both of which are priced in dollars, have gained ground in league with the U.S. currency's losses. Gold hit a record high earlier on Wednesday at $1,048.20 per ounce .

But gold priced in other currencies has seen nothing like the same sorts of gains. While the precious metal has gained almost 20 percent in dollar terms so far this year, gold priced in Australian dollars has fallen 5.6 percent .

Kitco said its index aims to determine whether the value of gold is actual, a reflection of changes in the dollar value, or a combination of both.

"When you take the dollar out of the equation, which this basket does, and you start looking at gold in the six-currency basket, you realise that this has been a dollar story," Kitco senior analyst Jon Nadler told Reuters on the sidelines of the Commodities Week Europe conference in London.

"We lose focus on real value or fair value by simply looking at the $1,000 situation."