inflation, goldI always assumed that physical gold is inflation-proof, but my advisor at my bank claimed it is not - unfortunately without going into details. Now I wonder what he meant.
My assumption was: If I buy gold now for $100 and that inflation reduces the value of the Dollar by 50%, I will be able to sell my gold for $200. The $200 are worth the same as my $100 before deflation.
Conclusion - Gold is inflation-proof. But by this simple logic every physical entity that does not lose intrinsic value over time is inflation-proof. Am I wrong here or is it really that simple?
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