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<p>[QUOTE=&quot;Troodon, post: 345279, member: 4626&quot;]Er well you can&#039;t lose your <i>nominal</i> investment anyway... but if your money is in an account earning an interest rate lower than the rate of inflation, the actual buying power of the money in your account is constantly losing <i>actual</i> (inflation-adjusted) value.</p><p><br /></p><p>Compare that to the value of precious metals, that actually increase in value, because of increased demand, during times of higher inflation, and you&#039;ll see why precious metals are a popular way to hedge savings against inflation.&nbsp; There&#039;s a reason why gold has been valued as a store of wealth for literally thousands of years.</p><p><br /></p><p>Now to be fair, you can lose money in gold... however gold is likely to always be worth <i>something</i> so long as it&#039;s reasonably scarce and someone doesn&#039;t find a mountain made out of pure gold somewhere.&nbsp; Keep in mind that the real reason most people invest in gold is to have a stable hedge against inflation over the long term, not necessarily sell it at a profit as its price fluctuates upwards.&nbsp; The first is reasonably safe... the latter strategy is a lot more risky.&nbsp; Know what you&#039;re getting into, and if anyone claims they <i>know</i> exactly what gold&#039;s price will do in the future, realize they&#039;re lying; the best one can do is make an educated guess based on trends.&nbsp; Coveat emptor.[/QUOTE]</p><p><br /></p>

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