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that's my point. "Store of value" implies storing value, not losing value. Which is why I am saying there is no such thing - all you have is various types of
by vasilipupkin 9y ago
that's my point. "Store of value" implies storing value, not losing value. Which is why I am saying there is no such thing - all you have is various types of investments which can make or lose money over time
- adventured 9y agoGold did not lose value. It locked you in at the price you paid in that time's dollar. If you then try to swap that locked in value for a dollar at a later date that has a higher value, you will suffer the imbalance. It stored your value. It's the dollar that gained (or lost) value. You're attempting to move back into the dollar afterward, when the dollar's value has shifted. What you're describing is that, as an example, a mistake was made by locking in your value by buying gold at a weak 1980 dollar price, then the dollar gained significant value in subsequent years, and then you're again trying to move back out of gold and into the dollar later (ie exchanging gold for dollars) after the dollar has climbed (while your value in the gold was set at that weak 1980 dollar). Your loss is the difference between the two different values of the dollar at two points in time separated by decades.
- vasilipupkin 9y agoif this was true, the same would have happened to other dollar denominated assets - but it didn't. So, no, it's specifically gold that lost its value 70% during that period, not dollar gaining value.