Post
Topic
Board Economics
Re: Hi Excuse me Are currencies a "store of value
by
deisik
on 09/01/2020, 10:50:32 UTC
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame
My dear, you may use all the commodities as a store of value still there is no guarantee that whatever you’re using to store your value will make your value increase, there are chances that it can decrease. There are people who make use of gold to store their value, gold does not only increase, it can as well decrease. Anything stocks, assets, or currencies can be used as a store for value, and they are either going to increase in value or decrease

Most commodities are useless as a store of value

That's simply because they quickly lose their market value following the loss of consumer properties over time. Why d'ya think gold has become such a damn good store of value? Because it doesn't lose its shine and appeal over centuries, and it is virtually indestructible at that. Your car loses half of its remaining value with each year of driving, and it is the same with other goods. Yes, there are vintage cars which only get more expensive with age (among a few other things like antiques) but these are rare and far in between, confirming the rule rather than breaking it