"Gold intrinsically does not change in value. Paper money does. "
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I have read a lot of this statement but I could never quite figure out what 'intrinsic' actually mean. When I grew up and appreciated the value of fiat money (I have never know any other form, pre-Nixon 1971 gold back ccy was before my time) I just can't figure out beside the major CCY quotes, how else can gold be valued? Ratio to oil or other commodities perhaps or maybe a factorial of a US Bond?
I personally earn in AUD and if I buy gold then I know my cost base. If I ever required to convert gold back to fiat then I know at that point in time if I made a profit. If I slavishly keep buying gold and never reduce that ownership, how can I enjoy the fruits of my investment. Unfortunately my earning capacity is finite and I don't have rich relatives willing to part inheritance to me.
Wealth protection is one thing which everyone strives to do in different ways but I am more focused on wealth creation. It is the chicken or the egg of investment.
