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<p>[QUOTE="Troodon, post: 600118, member: 4626"]Don't make the mistake people often do when talking about the value of a currency to confuse measuring value by the relative purchasing power of the currency with foreign exchange rates, which are two entirely different animals.</p><p><br /></p><p>Measured the first way, the US dollar is actually fairly stable over the long run, if you make adjustments for inflation.</p><p><br /></p><p>Gold has been even more stable in its purchasing power... I remember someone pointing out once while $20 certaintly doesn't but now what it did 100 years ago... the amount of gold in a $20 gold piece has approximately the same buying power now as it did then. You're looking for a stable store of wealth, can't do much better than gold.</p><p><br /></p><p>You want to play the foreign exchange game, good luck. There's a lot to keep track of though when you try to forsee the trends... when you invest in a stock, you're trying to figure out how the company is performing and what they will do to the stock price. Foreign exchange investing is betting on economies of entire countries... good luck with that! However, you can make money doing it, if you know what you're doing (just ask George Soros, who made a significant portion of his wealth betting on the exchange rate between the US dollar and the British pound).[/QUOTE]</p><p><br /></p>
[QUOTE="Troodon, post: 600118, member: 4626"]Don't make the mistake people often do when talking about the value of a currency to confuse measuring value by the relative purchasing power of the currency with foreign exchange rates, which are two entirely different animals. Measured the first way, the US dollar is actually fairly stable over the long run, if you make adjustments for inflation. Gold has been even more stable in its purchasing power... I remember someone pointing out once while $20 certaintly doesn't but now what it did 100 years ago... the amount of gold in a $20 gold piece has approximately the same buying power now as it did then. You're looking for a stable store of wealth, can't do much better than gold. You want to play the foreign exchange game, good luck. There's a lot to keep track of though when you try to forsee the trends... when you invest in a stock, you're trying to figure out how the company is performing and what they will do to the stock price. Foreign exchange investing is betting on economies of entire countries... good luck with that! However, you can make money doing it, if you know what you're doing (just ask George Soros, who made a significant portion of his wealth betting on the exchange rate between the US dollar and the British pound).[/QUOTE]
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