Sibirsky wrote:Gold stores value. You're not seriously asking this question are you? In the year 2000, in the year 2000 I have $2000. I decide to store it for 10 years. I store half of it in gold. Half in US dollars. So I buy 3.58 ounces of gold. And I keep $1000 in cash next to it. Today, 10 years later, I still have the $1000 in cash. Consumer prices have eroded the purchasing power of it to $789.87 (in year 2000 dollars). Value has eroded due to inflation. I can go sell my gold on the open market for $4,417.61. Adjusting for the CPI erosion that is $3.489.33 (in year 2000 dollars). The dollar has not stored value, while gold has increased the value of my holdings.
Are you under the mistaken belief that gold never decreases in value?



