There is a widespread confusion between value and price.
An ounce of gold is always worth the same, even if it changes its price. While it is true that since the year 2012 the price of the ounce has fallen over $ 1,800 to about $1,200, (30%), its value is the same. In 1914, an ounce was worth $19 and today it is $1.222. Legal money has no intrinsic value (any currency in the world could be worth 0). As an example, all currencies throughout history have ultimately gone devaluating to zero. The same applies to shares, bonds, deposits, etc. This may never occur with physical gold.
- Liquidity: gold is the most liquid money, and allows you to obtain more goods in any market, in any era of history. The convertibility of gold in any currency nowadays is immediate almost anywhere in the world (194 countries). Even the US Dollar is as convertible today.
- Tangibility: It is virtually an indestructible material. It does not combine chemically, it does not rust, it does not burn… even in the case of a fire merged the gold with the steel of the safe deposit box which it is saved in, it is retrieved in a refinery, and returned to the system through recycling, the other source of gold in addition to mining.
- Preserves the purchasing power: the value of the goods that can be obtained along history with a fixed quantity of gold remains virtually constant and relies solely on the productive capacity and productivity of the economy of the historical era that is being analyzed.