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All investors should choose gold over the dollar because paper money is always debased. Organizations like Apple, Microsoft, and Google bought government bonds
by marbro 1y ago
All investors should choose gold over the dollar because paper money is always debased. Organizations like Apple, Microsoft, and Google bought government bonds 10 years ago when the price of gold was $1100 and have watched their investments erode while gold has increased to $4000.
- karmakurtisaani 1y agoDo you also give forward looking investment advice, or strictly limit to looking what would have worked 10 years ago?
- AnimalMuppet 1y agoI see this kind of idea a lot, and it's wrong. The surface way it's wrong is that investors could have invested in Nvidia 10 years ago instead of gold. Because they didn't, their investments "eroded" even more. The deeper way it's wrong is that people who say this almost always have the unstated premise that gold is "real" money, that every price should be measured against it. That premise is false. When gold was allowed to float in terms of the US dollar, it went up to $200, then dropped down to $100. When it dropped to $100, the dollar didn't become worth twice as much. Or, to use a more recent example, there has not been a factor of 4 inflation over the last 10 years. So gold is not a fixed measuring stick, against which all other things are measured.