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What is a store of value?

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Founder and director of investment website JustOneLap.com, Simon Brown. (Photo: Finweek)
Founder and director of investment website JustOneLap.com, Simon Brown. (Photo: Finweek)

One of the defenses of holding gold in the long term has been that it acts as a store of value – in essence it protects against inflation.

There is an old market adage that claims an ounce of gold can always get you a decent suit from Savile Row in London. This may have been true at certain times over the last 100 years or so, but it is nonsense.

Thus, there was no chance the price of a Savile Row suit dropped by more than half over that period.

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