[the invisib1e hand]

Even a rather wobbly reserve currency is a better asset than gold

no gold bug, me, but this doesn't jive.

[Neidermeyer]

Even a rather wobbly reserve currency is a better asset than gold
no gold bug, me, but this doesn’t jive.
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I agree , this sounds just like when an analyst puts out a “hold” signal while their people sell like crazy.

[JasonC]

He's right. With the interest collected included, dollars have held their value in real terms since the Fed was founded, and with a vastly smoother ride than gold. Gold hasn't offered any higher return than just taking your interest in dollars, and it has had 10 times the volatility. Sure the return is higher than bills stuffed in a mattress, but that isn't saying anything.

Real property carried at low interest rates can be even a better hedge, and some of each better still. Gold can zig when other things zag and be worth a modest position for that reason, or as catastrophe insurance. But as a long term store of value it isn't as good as currency lent at interest.