And oil prices have gone up just as much. Once upon a time oil was a dollar a barrel...
Come on, inflation increases the value of all commodities, gold, silver, oil, corn, wheat, etc...
It's not like gold is special.
Come on, inflation increases the value of all commodities, gold, silver, oil, corn, wheat, etc...
It's not like gold is special.
But you're right about one thing... inflation increases the value of real assets.
Or to put it better, the value of real things doesn't change (a loaf of bread is a loaf of bread) but the value of the dollar weakens in regards to it with inflation. Bringing us back to the beginning of the argument that inflation steals the purchasing power of people.
If I bought gold 20 years back I would have paid $300 for 1 toz. That same 1 toz of gold today costs me $1351. The gold hasn't changed. The US$'s purchasing power has.
[EDIT: I should mention that inflation isn't the sole reason it takes more money to buy gold than 20 years ago. There are of course some other factors.]
Alot of other factors. Like the fact that gold is widely used in electronic circuits, and not just for bling now. This of course will increase demand for it, beyond its use as a 'hard' currency...
>Bringing us back to the beginning of the argument that inflation steals the purchasing power of people.
It does, but wages have historically followed inflation, as historic data shows, leaving the average person no worse off (unless their only asset is a pile of cash under their mattress...).
It is a pretty cool (pun) metal though, I'll give them that.