Which asset has the worst store of value?

Question

a) gold bars, b) A portfolio of diversified stocks c) checking account d) a house e) certificate of deposit f) savings account.

Store of Value- An asset set aside for future use; one of the three functions of money.

Answer 1

read the question joseph.  the question asks what is a STORE OF VALUE.  of the choices listed gold is the only true long term store of value.  all of the others involve some element of risk and could possible lose all of their value.  gold is real money and hasn't lost it's value in 5000 years of use as money.

ed has the correct answer

Answer 2

c: checking account

Answer 3

Historically, gold.

Stocks have historically returned around 10-12%

Property has historically returned 4-6%

CD's historically return slightly above the current inflation rate, as do Savings accounts.

Checking accounts these days typically have a very, very low interest rate (perhaps 1-2% on a minimum balance).

The long-term return on gold is effectively the inflation rate, so in terms of "real return", though it fluctuates over the near-term, in any true investment sense gold actually yields 0%.

Answer 4

Checking accounts are designed for money that is flowing out. Pays the least interest because it causes the most work for the bank.