Gold keeps up with inflation but doesn't outpace it.
Gold is insurance against total financial meltdown. Is keeping a few gold coins on hand a good idea? It's not without merit.
As we've seen recently, what was in great demand during early Covid was toilet paper, cleaning supplies, food, etc.
Could you have exchanged your gold for toilet paper? Probably. How much would someone ask for a roll?
If gold only keeps pace with inflation, you could only buy the same amount of goods with it in the future under normal conditions.
This is not a bad thing if paper money becomes worthless like in pre-WW II Germany.
Since gold only historically keeps pace with inflation it is a poor investment if you want to grow your wealth.
Can you speculate in gold, buying when low and selling when higher in times of economic uncertainty like today? Yes.
You bought low and sell high before the price drops when things return to normal.
Over the long term it will only keep pace with inflation.
Gold Bugs are doom-and-gloomers generally. They believe chaos is coming, the dollar will be worthless, society will crumble, etc.
If you feel this is a possibility, buy some quality gold coins.
If you want to grow your wealth, invest in things that outpace inflation.
