[mugs99]

Within that range gold holds a store of value

Gold holds its value in any range. An ounce of gold would buy you a good suit in 1900. An ounce of gold will buy you a good suit today. Fiat currency has no real value.
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[Alter Kaker]

An ounce of gold would buy you a good suit in 1900. An ounce of gold will buy you a good suit today. Fiat currency has no real value.

Gold has no more inherent value than anything else -- the laws of supply and demand apply to it as much as they do to currency.

If you'd kept that ounce of gold since 1900, you'd have lost a lot of money. (1) You'd have had zero positive return on your investment. (2) You'd have lost money in storage, transaction and authenticating fees, and you'd have had capital tied down in gold that you could have spent on better investments (securities, real estate, etc.).

[AFPhys]

twenty five years ago, 100 ounces of gold would buy you a nice 4 bedroom house.

today, 100 ounces of gold would buy you about one-fourth of that house.