Gold is the Most Stable Currency in the Long-Term

by Jan Nieuwenhuijs

CPM Group recently released a video showing that gold’s purchasing power declines over time. According to my analysis this is false. Gold’s purchasing power is markedly stable, and outperforms any other currency.

If gold didn’t retain its purchasing power, why would long-term investors and central banks store it in their vaults for decades? Hardly is gold used for industrial applications, so, again, why hold large stocks of gold if it would lose its value over time? The truth is that gold retains its value, and the stability of gold’s purchasing power in the long-term is the main reason to own it.

On August 21, 2020, precious metals consultancy firm CPM Group released a video on Youtube, which shows that in the long-term gold’s value declines. I will not go into every detail of the video, but its core message is that gold’s purchasing power always decreases.

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