RT
Gold, which is traditionally seen as a safe haven, is usually subject to the whims of supply and demand. Its value changes quickly, pushing the bullion price to extremely high levels at times.
The yellow metal also makes a habit of performing poorly when the stock market is doing well. But gold is the ultimate store of value, according to precious metals expert Ronan Manly of Singapore's BullionStar.
"What this means is that gold retains its purchasing power over long periods. Gold's purchasing power is not eroded by inflation as it is an inflation hedge," the analyst told RT. "In contrast, fiat currencies such as the US dollar are not stores of value. Fiat currency purchasing power is consistently eroded by inflation, and over time fiat currencies, such as the US dollar, lose nearly all of their purchasing power relative to gold."
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Gold, which is traditionally seen as a safe haven, is usually subject to the whims of supply and demand. Its value changes quickly, pushing the bullion price to extremely high levels at times.
The yellow metal also makes a habit of performing poorly when the stock market is doing well. But gold is the ultimate store of value, according to precious metals expert Ronan Manly of Singapore's BullionStar.
"What this means is that gold retains its purchasing power over long periods. Gold's purchasing power is not eroded by inflation as it is an inflation hedge," the analyst told RT. "In contrast, fiat currencies such as the US dollar are not stores of value. Fiat currency purchasing power is consistently eroded by inflation, and over time fiat currencies, such as the US dollar, lose nearly all of their purchasing power relative to gold."
Read more
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