Even gold is subject to inflation. Treasure hunters found a famous shipwreck containing a purported $1 billion in gold coins. While this find won’t noticeably decrease the value of gold, there will be a decrease, since the price of gold is partly dependent on the supply. Still, the supply of gold is relatively stable compared to the supply of paper money. Just last year, the Federal Reserve created about $7.3 trillion of dollars for failing banks and businesses. For this reason, I avoid the dollar and instead buy gold, a product that must be mined or found at the bottom of the ocean.
- DC metro promotes dollar coins since dollar will soon be worth a quarter
- NY Times explains Fed prints money