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<p>[QUOTE=&quot;medoraman, post: 1226298, member: 26302&quot;]Inflexion makes great points about history. Fatima, going back to only 1971 is way too short a time frame to be judging this. If you go back 100 years and index gold to inflation you will see gold today is about the same as it has always been. The major changes was government getting involved, and further government intervention in the 80&#039;s and 90&#039;s in the form of gold sales. Absent those actions, I find gold following inflation pretty well, and today&#039;s price is in line with the price in 1933 before government intervention.</p><p><br /></p><p>There are major problems with comparing gold to any stock basket like the Dow, since you have issues like survivorship bias and the like. You also have survivorship bias with comparing gold with the dollar, so in those terms, comparing gold to a basket of currencies, I would agree gold was the best investment in terms of retaining purchasing value. By gold I am meaning the metal itself and similar easily storable like items.</p><p><br /></p><p>Edit: One thing about gold being the highest price ever. Absent any other activity, gold should reach its highest price ever EVERY DAY, so should other commodities. Every day your dollar in nominal terms is worth less, right?[/QUOTE]</p><p><br /></p>

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