Gold

[Leo Bolta]

Hello Gnu users,
 
I've only been using GnuCash for about three weeks now but love it.  I was
recently pleasantly surprised to learn that a double entry accounting system
can be catered to handling the fluctuating values of investments.
 
My fundamental question is regards to how to incorporate into the Gnu
system, the fluctuating values of an inventory of physical gold.  If one had
bought physical gold in a country outside of the US but the initial purchase
was based on the US currency, wouldn't one have to take the current market
price of gold in the US$, then establish the price based on the value of the
US$ that it was initially purchased, then convert again into the current
local based currency?  
 
In other words, in addition to the price of the fluctuating price of gold,
there would be two other currency variables playing a part in determining
it's value in the currency of the foreign country.  Is my theory right or am
I way off?  And if the theory is correct, can GnuCash handle such an ongoing
valuation?
 
Regards,
 
Leo