tvb

Gold Train: All Aboard

I understand the value of holding gold, or other "real assets", as opposed to keeping cash under your mattress, protects you against inflation and resultant currency devaluation. That said, most people hold their dollars in investments (e.g. treasuries or bank CDs) that pay interest rates which typically compensate for this inflation/devaluation plus offering an extra return margin (i.e. TYPICALLY offering real not just nominal returns). Gold, is no sure protection against inflation/currency devaluation. The CPI adjusted gold price for 1979 is c. 2000/once, meaning gold investors have suffered a substantial real loss over the past 29 years. Not, historically, a great/safe investment.