Comment by tim333

The key word is relatively. Compared to cash or index investing gold has been far more consistent, while cash has devalued loads even after adjusting for the government indexes, and stocks have gone up loads in real terms assuming you did something passive and reinvested dividends.

The reason it's been fairly constant is that over the long term the cost is driven by the cost of mining it and costs of say getting an acre of land, digging up earth and processing it remains somewhat comparable to the cost of getting an acre of land and building a house.

Cash depreciates because voters say we need more wages and it's easier for governments to print money than make everyone richer in real terms. They can try to generate the illusion of richer in real terms by fiddling the inflation stats, say focusing on a basket of vegetables and not medical costs or beachfront property,

Stocks go up because companies make profits and reinvest.