cmendla - 8:33 pm on Oct 24, 2011 (gmt 0)
Viggen - Correct me if I'm wrong... I believe that the price of gold today in US dollars is not that the gold has become more valuable per se, but that the dollar has become less valuable.
My understanding is that gold has been a consistent store of value. ie. the amount of gold that bought a fine suit in 1850 is pretty much the same amount of gold today.
One of the problems with investments, as I see it, is that inflation will kill your wealth. In the US we have had a pretty consistent attack on corporations. Now, if things go screwy and we have 20 percent inflation (we had about 18 or so under carter) that would be OK if you could get a 15-18 percent return on your investments.
However, if the corporations are attacked and taxed to death, then you probably won't get a high rate of return. A nightmare would be a 25 % spread between inflation and available rates return. In that case, your entire net worth would evaporate in about 5 years.