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Because you're comparing the value of one thing over time against the rate at which you would gain value in a different investment over time. I can see an argum
by willurd 14y ago
Because you're comparing the value of one thing over time against the rate at which you would gain value in a different investment over time. I can see an argument for why you might say tbonds have been a better investment than gold, per se, but that's not what I'm talking about. I'm talking about the necessary volatility of fiat money because it's not backed by anything of real, unchanging value. I'm talking about the purchasing power of the same amount of gold and USD over time.
- fr0sty 14y ago> it's not backed by anything of real, unchanging value. Are you actually arguing that gold's value does not change? Also, what are you using to measure the "volatility" you claim fiat money has so much of?
- willurd 14y ago"what are you using to measure the "volatility" you claim fiat money has so much of" Inflation. And 'unchanging' wasn't the best choice of words, but my point is that gold is not subject to the whims of monetary policy makers because you can't create more gold. Gold's value only changes when more gold is discovered.