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<p>[QUOTE="medoraman, post: 1153820, member: 26302"]Exactly, this is the trap people get into, (or lay if you are the one arguing it). "Cash" is really not a $20 bill at all, but an investment that will compound. Yes, of course, someone holding onto a $5 bill will lose big time. Kind of puts into perspective all of the "profit" people made over the years from notes, huh? I mean, someone in 1935 buying a $10,000 at face value and selling it today for $100,000 didn't really make much of a return.</p><p><br /></p><p>Anyway, its a fool's argument to say I would rather have a $20 gold piece than a $20 note and hold for 70 years. Of course they would. I would rather have $20 of any commodity today rather than a $20 bill to hold onto for the next 70 years. However, to say $20 in gold, (or any commodity), will outperform $20 invested intelligently is a guess. History will say a bad guess, since it has not worked out that way historically. The same goes for graphs showing this relationship. If you just show the price of almost ANY commodity versus a dollar, you will show declining dollar value. This is a fallacy, since dollars in the 1930's would have GROWN in the meantime. Its common trap, misunderstood by the general public and used to prey on the financially misinformed unfortunately.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1153820, member: 26302"]Exactly, this is the trap people get into, (or lay if you are the one arguing it). "Cash" is really not a $20 bill at all, but an investment that will compound. Yes, of course, someone holding onto a $5 bill will lose big time. Kind of puts into perspective all of the "profit" people made over the years from notes, huh? I mean, someone in 1935 buying a $10,000 at face value and selling it today for $100,000 didn't really make much of a return. Anyway, its a fool's argument to say I would rather have a $20 gold piece than a $20 note and hold for 70 years. Of course they would. I would rather have $20 of any commodity today rather than a $20 bill to hold onto for the next 70 years. However, to say $20 in gold, (or any commodity), will outperform $20 invested intelligently is a guess. History will say a bad guess, since it has not worked out that way historically. The same goes for graphs showing this relationship. If you just show the price of almost ANY commodity versus a dollar, you will show declining dollar value. This is a fallacy, since dollars in the 1930's would have GROWN in the meantime. Its common trap, misunderstood by the general public and used to prey on the financially misinformed unfortunately. Chris[/QUOTE]
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