reply to post by anotherdad
To illustrate further, assume in January of this year, you had $1,000 in savings. You aren't getting squat for interest, but you got lucky and
received say, 5% interest per annum.
You hold it, and for that year, you made $50.
Now, in the meantime, gold that was $1,000 an ounce in January went up to $1,100 in the same period.
That means that $1,000 in cash you had, just lost $100 in purchasing power.
Had you had your $1,000 in gold, you'd still have your ounce of gold, not losing any value.
$100 false appreciation in gold, less $50 in devalued currency, and you still lost $50, even though you will have to pay taxes on that $50 gain.
And while gold is the real standard, silver is more easily exchanged, since it's in smaller increments.
My Dad told me as a kid during the Depression, since there were 12 kids raised on a large farm, they really couldn't tell the difference. They
raised everything they needed, bartered for most other things, but once in a while, they had to have hard cash.
Not that paper crap. HARD cash. Gold or silver.
Something to think about.
For every point that gold appreciates in price per ounce, your dollars just lost the inverse amount in purchasing power.