One of the defenses of holding gold in the long term has been that it acts as a store of value – in essence it protects against inflation. There is an old market adage that claims an ounce of gold can always get you a decent suit from Savile Row in London. This may have been true at certain times over the last 100 years or so, but it is nonsense.
Gold was above $800 an ounce in 1980 and then traded down to around $250 by the turn of the millennium 20 years later. Thus, there was no chance the price of a Savile Row suit dropped by more than half over that period.
Bitcoin and other cryptocurrencies are often called a store of value, but the recent rally and subsequent collapse put paid to that theory.
This story is from the 11 June 2021 edition of Finweek English.
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This story is from the 11 June 2021 edition of Finweek English.
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