There are several fallacies inherent in the time-honoured argument that gold does not change while silver fluctuates violently. Gold is as much a commodity as silver, wheat, cotton or sugar. Through a perverted training of the average public, it is wrongly believed that while gold remains always somewhere near £3.17.9 per oz., silver has varied from 22 to 36 pence, cotton from 4 pence to 8 pence and likewise other commodities. The mistake has arisen in this manner; while gold is valued in terms of itself, other commodities are valued in terms of gold. The proper method is to value gold in terms of commodities, as the commodities are valued in terms of gold; and when, by such means, the effect of interplay of economic forces is understood we can arrive at the proper relation between gold and all other commodities. Judged by this standard, during the course of a number of years, gold has been varying in value quite as much as silver or any other commodity. The greater or less supply of gold has influenced its value quite as much as the greater or less supply of silver or wheat; and economic forces have had the fullest influence over gold, equally with silver, cotton or wheat. It is wrong to hold that gold has an intrinsic value and that its buying power is of secondary importance.