Store of Wealth?
I have read quite a bit about Gold as a store of wealth but I just don’t understand one thing:
Say I use $170,000 to buy 100 ounces of gold in 2013. It’s now 2020 and the price of gold is $1200/ounce. I now want to buy a house worth with a price tag of $160,000 and need to sell my gold to finance the purchase. But I now only get $120,000 for my gold and I have to find the other $40,000 from savings or wherever. How in this instance is gold a store of wealth?
As we cannot directly purchase anything with gold isn’t its value intrinsically linked to fiat, as fiat is currently the recognised means of wealth transfer?