"so it doesn't matter whether [gold's] worth
$500 or $10,000 as all those Dollars are worthless"
Gold can't be worth $500-10000 per ounce and infinity at the same time.
Gold tends to oscillate over time, but for the most part on a long term time scale, it maintains it's purchasing power.
The long term track record of the dollar is that it lost about 96-97% of it's purchasing power over the past 97 years. The typical decline was therefore just under 4% per year.
If I was a betting man, I'd say that in the next 20 years, we'll see a decline the $US of 50% or more, but less than 100%. So in twenty years, you can use some number of dollars to buy an ounce of gold, showing that the dollar is still a store of value, but one in which the purchasing power decays fairly rapidly. One had better get a really good yield, e.g. about 10% per year before tax, to have any hope of keeping up dollar-based purchasing power.
Even as gold keeps up, however, one's purchasing power will be nicked by the tax octopi the moment one converts that gold back into the local currency. |
