Quote:
Originally Posted by Sly
If gold was worth today what it was five years ago, would we be having this discussion? $1000 in cash five years ago is still worth somewhere around $1000, take away a little bit for inflation, sure.
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Does your $1000 still allow you to buy the same amount of products and services as it did 5, 10 or 50 years ago?
Quote:
Originally Posted by Sly
$1000 of gold five years ago is worth something completely different today and will be worth something completely different in five years from now, whereas $1000 in cash will still be in the same ballpark (minus financial Armageddon, which many of you seem to fear.)
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Are you talking about $1000 of gold as in the original meaning of the word whereby 1 USD represents a fixed amount of gold? Probably not, since the USD is no longer backed by gold. The fluctuation in the price of gold you are describing is actually a result of the instability of the USD, the Euro etc.
The
value of gold has essentially not changed over the past (let's say 10) years, yet its
price expressed in USD has. This should tell you something about the USD.