Can anyone remember gold doing this in the 1970’s??? I don't
The price of gold went from around $37/ounce in 1970 to $585/ounce in 1980.
It reflects on paper currency the same way Tulips did when they shot up in price in the great Tulip Buble.
Gold has a little more credibility because it used to be used as a currency. But these days it’s a commodity just like any other. It’s value is derived solely by the psychology of what people are willing to pay for it. It’s the greater fool theory. They think there will always be someone willing to pay as much or more for it than they did.
If you had $1,000.00 in cash today and once ounce of gold valued at $1,000/oz and you left them both sitting in your safe until 2019, your pile of cash will be worth less (much less probably) and your gold will be worth an equal amount more. So, today, you can go out and buy maybe 500 gallons of milk (for example) with your thousand dollars but in 2019 you may only be able to purchase 250 gallons of milk or even maybe 125 gallons of milk; however, you can take that ounce of gold and because it is a commodity (like milk), you can exchange it for enough money to buy your original 500 gallons of milk because it goes up in value over time as the value of fiat currency goes down. Gold is thus considered “inflation insurance” among other things.