Reasons to cancel the gold-only strategy: Lessons from 1982 to the present

Many people believe that gold is the “safest asset,” but the truth is quite different. When measured by real purchasing power—that is, what 1 ounce of gold can buy today compared to 1982—we realize that gold in 1982 was actually about 16% “more expensive” than it is today. What does this number mean? It indicates that although nominal gold prices have risen to $5,600/oz, its real purchasing power has decreased because the amount of money issued into the market has increased much faster than gold.

Gold in 1982 Had Higher Real Purchasing Power Than Today

Forty years ago, 1 ounce of gold could buy a small house anywhere. At that time, M2 (the total money supply in the economy) was not too large, so gold was relatively “rare” and “precious.” But from 1982 to now, the government has continuously printed money—what we call inflation—and the money supply has grown rapidly.

Today, 1 ounce of gold = $5,200, but a similar house from 1982 would cost around $500,000 or more. This means that gold no longer can buy a house like before, even though its nominal price is much higher. In other words, the strategy of “just holding gold to preserve wealth” is truly necessary because it cannot keep pace with the rapid decline in the value of money.

Why Holding Assets That Don’t Appreciate Is at a Disadvantage

As money continues to be printed, society “expands” in terms of the money supply, but the amount of real assets (homes, land, gold) does not keep up. The consequences are:

• Asset owners with high liquidity and growth potential (such as real estate in Vietnam since the 1990s or Bitcoin today) → become very wealthy quickly because assets not only preserve value but also increase their position within an expanding monetary system.

• People who only hold gold or assets for value preservation → maintain their purchasing power but only “stand still” relative to the system. They don’t lose anything, but they also gain no additional benefits.

• People holding cash → fall behind freely. Their salaries might increase by 10% annually, but inflation could be 15%, so their real purchasing power decreases.

In this environment, “standing still = losing.” When everything is more expensive (houses at 20 billion, cars at 5 billion, gold at $10,000/oz), you’ll realize that it’s not because assets are inherently “more expensive,” but because money is losing value. The feeling that everything is getting more expensive is just a reflection of currency depreciation.

Bitcoin: An Asset That Appreciates and Combats Inflation

To move beyond the “just hold gold” strategy and truly break free from the dollar-based monetary system, you need an asset with higher growth potential, sustainable appreciation, and not affected by monetary policy cycles.

Bitcoin is currently that asset. Unlike gold—only helping to preserve value—Bitcoin can both hedge against inflation (fixed supply, solid) and increase in value as global demand grows. As of now (2026-02-09), Bitcoin trades around $70,700, demonstrating that it not only retains its value but also creates new opportunities for wealth accumulation.

As money continues to be printed, assets like Bitcoin—with technological advantages, limited supply, and global acceptance—will strengthen their position within the global monetary system. That’s why moving away from the “just hold gold for safety” strategy and shifting to assets with genuine growth potential is a smart move in today’s monetary environment.