[wrench]

Gold is a storage of wealth not an investment.

Over the long term. an ounce of gold today pretty much buys what an ounce of gold did 50 years ago, 100 years ago, 1,000 years ago, etc.

[DoughtyOne]

I agree with that. I’m not sure people understand that though, and they do use it for investment purposes.

[Flick Lives]

Over the long term. an ounce of gold today pretty much buys what an ounce of gold did 50 years ago, 100 years ago, 1,000 years ago, etc.

That would be the very definition of a good currency; as opposed to fiat currencies such as the dollar which drops half its value about every 10 years.

[Myrddin]

15 oz of gold buys a new car for a family. That has been a rough valuation since 1976. Not so when the government held the value of gold at $35/oz. Once it floated to $120/oz, it roughly tracked a new car at 15 oz.

[Foundahardheadedwoman]

Absolutely true. It is insurance against the destruction of the dollar. Note what the dollar would buy in ‘35 vs. now, then compare it to the purchasing power of gold. I think there will be a window of time when gold will buy a lot more then it should. That window will close when the panic subsides.