Buy Gold, Because…

It’s pretty, isn’t it?

The coin which helped win the gold vs bitcoin debate at the Soho Forum

Photo credit: the author

Gold, Liquid Gold, and Inflation

Gold has a unique appearance. It is also astonishingly heavy—much heavier than it has any right to be. It’s just an inch and a quarter in diameter yet weighs 0.075 pounds. Everyone should hold one in his hand (and own a few).

But that’s not why many gold analysts today are saying you should buy gold. They are saying it will protect you from inflation. And the Keynesians and bitcoiners are smirking that gold is not, in fact, protecting you from inflation.

“Look at how much prices have risen,” they gloat. “Gold hasn’t gone up nearly as much as gasoline,” they practically smirk.

It would be tempting to unlimber the Tu Quoque Fallacy, to fire back at the bitcoiners. “Bitcoin hasn’t protected anyone either.” While that might feel good, it doesn’t really address the issue. They are right, in a narrow sense.