Can gold build wealth?
Investing in gold, for the reasons stated above, is difficult to make people rich, as far as gold in and of itself. You can invest in gold coins from a numismatic perspective, but that’s different than investing in gold as a commodity. What has been keeping gold prices from really surging has been a period of forced liquidation, where funds had to sell off their gold because they weren’t able to get access to money. That means that they not only weren’t holding on to gold, which they really wanted to, but also weren’t investing in it at a time when it usually warrants it. The attempt to artificially prop up the U.S. dollar has also resulted in gold prices moving up far beyond their current prices, which are still at historic highs, although not when adjusted for inflation. So at this time, investing in or buying gold in primarily being done for safety reasons, and as a hedge against inflation.
