Why Gold is the Go-To Asset to Store Value

Mobile computing machine...AND currency hedge. Think about it.

Mobile computing machine...AND currency hedge. Think about it.

Many people wonder what makes gold so special as a store of value. When inflation fears set in, people flock to gold. One answer is that the dollar used to be backed by gold. An even better answer I will leave to Judy Shelton, an economist and director of the National Endowment for Democracy:

“From the mid-14th century until now, you can draw a relative straight line in the purchasing power of gold, and every central banker in their heart knows that. Gold is universally recognized as a store of value. That’s important because it denotes price stability.”

While fiat currencies come and go, gold was the standard currency used for international trade for centuries. Despite price fluctuations of gold, its purchasing power has pretty much remained the same; and a currency is only as good as its ability to buy goods and services.

3 Comments

  • lief erickson


    have you tried paying taxes in gold?

  • Andrew


    Well I don’t know about Ryan, but no, I haven’t tried that yet; nor have I with stocks, corporate bonds, REITs, or a signed, authentic, game-worn Michael Jordan rookie jersey. Fortunately there are marketplaces where you can liquidate any assets that have value for money. If those assets gain more value than the US dollar during the time you own them, you actually come out ahead, and can pay even more of your taxes.

  • Donut Man 5


    How much does that cost?

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