Harry Browne talked about this in the context of the 1970s, where the Swiss franc tripled against the dollar and gold went up 20 times against the dollar.Storm wrote:Foreign currency is not adequate inflation protection compared to gold. Gold has a multiplier effect, almost like being leveraged against inflation. In an inflationary scenario, where the dollar is devalued against a foreign currency, the currency would increase roughly the amount of value the dollar lost, where gold would increase many, many times that, and be able to carry the portfolio.AgAuMoney wrote: How is gold utilized in the context of the PP? Inflation or anticipation of inflation? Any good foreign currency (like the Swiss Franc 40 years ago) would do as well. (Now days it is hard to find a foreign currency that doesn't just inflate to match the dollar, more or less, except for gold.) Insurance against the catastrophic breakdown of your society? Any good foreign currency... As the "anti-asset" opposed to the stock market? Any currency might do as well...
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Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”