What is the best way to split individual investments between commodities and individual currencies? Is there an advantage to investing in commodity money and if so, what percentage of your personal finances should you spend amassing in commodities?

  • 2
    Not sure I understood your rant, but I vote to close it as off-topic since it is obviously not about anything related to personal finance. There are two options for this: economics@se if you're actually interested in the discussion of what a currency is, or politics@se if you're a nutcase who is into gold or something.
    – littleadv
    Oct 25 '15 at 5:51
  • And just for the record: precious metals, rental property etc - these are not in any way money. Unless you can buy a loaf of bread with your rental unit, that is, but I seriously doubt you can.
    – littleadv
    Oct 25 '15 at 5:53
  • 1
    You're using your own personal definition of the word "money" here, so the question is unanswerable.
    – Mike Scott
    Oct 25 '15 at 6:00

I apply what you term 'money' to the word 'commodity'. And I agree with littleadv, you are just selling us your perspective on (such things as) precious metals.

What I want you to think about is these truths:

  • You cannot eat gold
  • Gold pays no dividend
  • It is extremely difficult to spend gold
  • Gold earns no profit by action
  • All currency is fiat money, even gold. All currency has (spendable) value only because we agree that it has that value.

When used as currency gold just has two values: utility value and currency value. I hold it is better to separate the two.

There is not enough gold in the earth to represent the value in aggregate economies of the world. Trying to go back to the gold standard would only induce an unimaginable hyperinflation in gold.

Recent years shows that gold does not retain value. See the linked chart.