How is gold affected by inflation over period of times?

by: Article Muscle
Total views: 20 | Word Count: 154

Unlike many other currencies, gold value is more stable and not prone to be affected by inflation like other currencies. For example, think of yourself as a man in Germany during 1920's. If you have a million mark, which was worth something before, is used as wood fire. If a smart person bought gold with the money they had, or have invested in gold prior to the inflation, their money's worth would've stayed intact.

This is why many Americans now are buying gold more and more, because if anything was to happen to the USD currency, their gold value would stay and they won't have to lose their hard earned money. In 1900, the gold price was $20.67/oz, which equates to about $503/oz in today's prices. In the two years to end-December 2006, the actual price of gold averaged $524.

People buy gold because its power will stay stable for a long period of time.

About the Author

For more information concerning gold investment, real time gold exchange rates, articles, news, gold games and the official list to where gold can be bought, visit us at Gold Land USA @ Gold Land USA for more Gold Investment Information   

More Articles from: Investing