The title of this chapter may be a little obscure. Most readers will think they understand what is meant by the 'Price of Gold,' though I hope to show that not all is as clear as is usually assumed. The lN — 1 problem' is not perhaps self-evident. It is a bit of shorthand borrowed from the theory of flexible exchange rates. It has, however, a more general applicability to the fact that in quoting prices it is necessary to have a numeraire.