Swiss Economicblogs.org
Many investors still think about gold as if it were money. Economists identify three functions of money: store of value, means of exchange, and a unit of account. It can be a store of value, but the price fluctuates compared with other forms of money, or other commodities, like oil or silver. Some argue that it is a store of value because of the limited supply, but that argument applies to many other goods, including commodities and real estate (which Mark Twain said you have to...
Read More »Great Graphic: Gold and the Dollar
