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Functions of money | Financial sector | AP Macroeconomics | Khan Academy
Functions of money | Financial sector | AP Macroeconomics | Khan Academy
Published: 2016/06/20
Channel: Khan Academy
Utility vs Store of Value
Utility vs Store of Value
Published: 2014/02/28
Channel: belangp
Money #3 - Store of Value
Money #3 - Store of Value
Published: 2011/06/18
Channel: Ecolanguage
Why Money is not a Store of Value
Why Money is not a Store of Value
Published: 2018/06/10
Channel: The Value of Truth
Functions of money
Functions of money
Published: 2017/11/07
Channel: Economics Guider
Using Bitcoin as a Store of Value
Using Bitcoin as a Store of Value
Published: 2017/05/22
Channel: Ian Balina
Why Gold is the Store House of Wealth and Value.
Why Gold is the Store House of Wealth and Value.
Published: 2012/11/26
Channel: APMEX
What does store of value mean?
What does store of value mean?
Published: 2015/06/28
Channel: What Does That Mean?
SR 340 - Money Creation 2 - "Store of Value"?
SR 340 - Money Creation 2 - "Store of Value"?
Published: 2014/11/27
Channel: The Still Report
The best store of value: Gold vs everything
The best store of value: Gold vs everything
Published: 2018/09/10
Channel: Goldma
Four functions of money
Four functions of money
Published: 2016/05/15
Channel: EnhanceTuition
GOLD, Understanding Gold as a store of value
GOLD, Understanding Gold as a store of value
Published: 2009/03/27
Channel: VisionVictory
LITECOIN, my store of value!
LITECOIN, my store of value!
Published: 2018/03/08
Channel: Modern Guru
Kerner:  Bitcoin well-positioned to be a store of value competing with gold
Kerner: Bitcoin well-positioned to be a store of value competing with gold
Published: 2018/08/17
Channel: CNBC Television
Silver- Not Always a Store of Value
Silver- Not Always a Store of Value
Published: 2013/09/21
Channel: MomentsInTrading
Goldman Sachs Lou Kerner thinks Bitcoin is a better store of value than Gold  - CNBC
Goldman Sachs Lou Kerner thinks Bitcoin is a better store of value than Gold - CNBC
Published: 2017/11/28
Channel: Subscribe Coin
Money as a store of value
Money as a store of value
Published: 2018/04/19
Channel: G Conomics
Raoul Pal: Bitcoin Is Mania, Not a Store of Value
Raoul Pal: Bitcoin Is Mania, Not a Store of Value
Published: 2017/06/02
Channel: Mauldin Economics
Money as a Store of Value
Money as a Store of Value
Published: 2017/03/05
Channel: orang ramai
Rick Rule: "Bet Against the Dollar as a Store of Value"
Rick Rule: "Bet Against the Dollar as a Store of Value"
Published: 2011/10/19
Channel: Casey Research
GOLD & SILVER: High Quality Store Of Value, Fragile Nature Of Currencies
GOLD & SILVER: High Quality Store Of Value, Fragile Nature Of Currencies
Published: 2018/04/10
Channel: SRSrocco Report
Terrible Store of Value
Terrible Store of Value
Published: 2018/03/15
Channel: cryptograffiti
Bitcoin Q&A: Price volatility and store-of-value
Bitcoin Q&A: Price volatility and store-of-value
Published: 2018/06/05
Channel: aantonop
Cryptonomics - Utility Versus Store of Value
Cryptonomics - Utility Versus Store of Value
Published: 2018/09/07
Channel: Decentralized TV
Best Store of Value For Cryptocurrency? Ethereum - Bitcoin - Litecoin - Bitcoin Cash
Best Store of Value For Cryptocurrency? Ethereum - Bitcoin - Litecoin - Bitcoin Cash
Published: 2018/01/13
Channel: Altcoin Buzz
What is the store of value network effect in Bitcoin?
What is the store of value network effect in Bitcoin?
Published: 2018/07/10
Channel: Off Chain with Jimmy Song
Um...Are Gold/BTC Core "Stores of Value" in a Sound Currency System? (Bix Weir)
Um...Are Gold/BTC Core "Stores of Value" in a Sound Currency System? (Bix Weir)
Published: 2017/11/30
Channel: RoadtoRoota
Lior Gantz: Which is a Better Store of Value: Gold or Bitcoin?
Lior Gantz: Which is a Better Store of Value: Gold or Bitcoin?
Published: 2018/04/02
Channel: Silver Bullion
Silver is an Excellent Store of Value
Silver is an Excellent Store of Value
Published: 2010/02/10
Channel: silverfyi
GOLD’S REMARKABLE STORE OF VALUE SHOWN IN CHARTS
GOLD’S REMARKABLE STORE OF VALUE SHOWN IN CHARTS
Published: 2017/06/19
Channel: Smaul gld
Bitcoin is not a store of value like gold & silver but medium of exchange
Bitcoin is not a store of value like gold & silver but medium of exchange
Published: 2011/06/12
Channel: Alexiscom1
A Real Discussion on Currencies as  Store of Value
A Real Discussion on Currencies as Store of Value
Published: 2015/11/14
Channel: Reggie Middleton
Gold pays no interest, has no use and no fundamental value.  What is your opinion?
Gold pays no interest, has no use and no fundamental value. What is your opinion?
Published: 2015/06/21
Channel: UKspreadbetting
Ignition Coin - Store of Value and Payments on the Blockchain
Ignition Coin - Store of Value and Payments on the Blockchain
Published: 2018/05/18
Channel: Technium Unlimited
Bitcoin Disrupts Gold - Bitcoin (BTC) price to $50000 on store of value story
Bitcoin Disrupts Gold - Bitcoin (BTC) price to $50000 on store of value story
Published: 2018/03/12
Channel: Dave Levine Dot Com
Utility vs Store of Value
Utility vs Store of Value
Published: 2014/08/14
Channel: FinanceAndLiberty.com
Bitcoin as a Store of Value
Bitcoin as a Store of Value
Published: 2017/02/24
Channel: Bryce Guy
BITCOIN VS. GOLD (BEST STORE OF VALUE?)
BITCOIN VS. GOLD (BEST STORE OF VALUE?)
Published: 2018/01/04
Channel: John D. Black
Bitcoin Right on Track to Become the Digital GOLD and Store of Value it was Meant to Be!
Bitcoin Right on Track to Become the Digital GOLD and Store of Value it was Meant to Be!
Published: 2018/06/03
Channel: Decentralized TV
Is Bitcoin A Better Store of Value Than Gold?
Is Bitcoin A Better Store of Value Than Gold?
Published: 2017/11/15
Channel: Luke FAQ
Bitcoin: store of value or digital cash? - Giacomo Zucco @ #BlockchainMilan
Bitcoin: store of value or digital cash? - Giacomo Zucco @ #BlockchainMilan
Published: 2018/07/17
Channel: Codemotion
The properties that make Bitcoin a superior store of value & money
The properties that make Bitcoin a superior store of value & money
Published: 2017/08/23
Channel: Anders Kargaard
Kenneth Ameduri On Bitcoin: The Decentralised Store Of Value
Kenneth Ameduri On Bitcoin: The Decentralised Store Of Value
Published: 2017/10/31
Channel: Crush The Street
The Relationship Between Medium of Exchange, Store of Value, and Unit of Account - Kyle Samani
The Relationship Between Medium of Exchange, Store of Value, and Unit of Account - Kyle Samani
Published: 2018/08/14
Channel: Refactor Camp
PowerLOAN - The Ultimate store of value !!!
PowerLOAN - The Ultimate store of value !!!
Published: 2018/04/21
Channel: CryptoSID
Gold not a store of value & BTC either (Commentary)
Gold not a store of value & BTC either (Commentary)
Published: 2017/08/23
Channel: dobe4ever
Andreas Antonopolous on using Bitcoin as a store of value
Andreas Antonopolous on using Bitcoin as a store of value
Published: 2017/07/28
Channel: The Coin Jungle
Bitcoin, cryptocurrencies have reached their bottom: Michael Novogratz
Bitcoin, cryptocurrencies have reached their bottom: Michael Novogratz
Published: 2018/09/19
Channel: Fox Business
Ethereum Is A Hub Of Innovation Not A Store Of Value? - Hudson Jameson Interview
Ethereum Is A Hub Of Innovation Not A Store Of Value? - Hudson Jameson Interview
Published: 2017/06/25
Channel: Crush The Street
Adeyemi On Crypto Currency As Store Of Value |Business Incorporated|
Adeyemi On Crypto Currency As Store Of Value |Business Incorporated|
Published: 2018/06/13
Channel: Channels Television
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WIKIPEDIA ARTICLE

From Wikipedia, the free encyclopedia
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A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.[citation needed] More generally, a store of value is anything that retains purchasing power into the future.

The most common store of value in modern times has been money, currency, or a commodity like a precious metal or financial capital. The point of any store of value is risk management due to a stable demand for the underlying asset. Money is one of the best stores of value because of its liquidity, that is, it can easily be exchanged for other goods and services.[1] An individual's wealth is the total of all stores of value including both monetary and nonmonetary assets.[2]

Money as a store of value[edit]

Various bills and coins

Monetary economics is the branch of economics which analyses the functions of money. Storage of value is one of the three generally accepted functions of money.[2] The other functions are the medium of exchange, which is used as an intermediary to avoid the inconveniences of the coincidence of wants, and the unit of account, which allows the value of various goods, services, assets and liabilities to be rendered in multiples of the same unit. Money is well-suited to storing value because of its purchasing power.[1] It is also useful because of its durability.[3]

Because of its function as a store of value, large quantities of money are hoarded.[4] Money's usefulness as a store of value declines if there are significant changes in the general level of prices.[5] So if inflation rises, purchasing power declines and a cost is placed on those holding money.[6]

Workers who are paid in a currency which is experiencing high-inflation will prefer to spend their income quickly instead of saving it.[3] When a currency loses its store of value, or more accurately when a currency is perceived to lose its future purchasing power, it fails to function as money. This causes people to use currencies from other countries as a substitute.[3]

According to the Cambridge cash-balance theory, which is represented by the Cambridge equation, money's ability to store value is more important than its function as a medium of exchange.[7] Cambridge claims that the demand for money is derived from its ability to store value. This is contrary to Fisher economists' belief that demand arises because money is needed for exchange.[8]

Other stores of value[edit]

Polish National Government bond, 1863
Commodities such as gold are good stores of value

Examples for stores of value other than money are:

While these items may be inconvenient to trade daily or store, and may vary in value quite significantly, they rarely lose all value. It need not be a capital asset at all, merely have economic value that is not known to disappear even in the worst situation. The disadvantage for land, houses and property as a store for value is that it may take time to find a buyer for those assets.[6] In principle, this could be true of any industrial commodity, but gold and precious metals are generally favored, because of their demand and rarity in nature, which reduces the risk of devaluation associated with increased production and supply.

Speculative investments[edit]

Insofar as an investment is speculative, it should not be considered a store of value because it lacks stability. An asset should only be considered a store of value if it is stable against future purchasing power.

At various times throughout history, people and nations have famously made the mistake of believing that they could "store value" in speculative instruments, misunderstanding that ones personal choice to invest in a speculative asset does not automatically convert that asset into a proper and predictable store of value.

Examples of assets that are not traditionally considered stores of value:

See also[edit]

References[edit]

  1. ^ a b Gwartney, James; Richard Stroup; Russell Sobel; David Macpherson (2008). Economics: Private and Public Choice. Cengage Learning. p. 264. ISBN 0324580185. Retrieved 2 January 2017. 
  2. ^ a b Mankiw, N. Gregory (2012). Essentials of Economics. Cengage Learning. p. 437. ISBN 1133418945. Retrieved 2 January 2017. 
  3. ^ a b c Boyes, William; Michael Melvin (2011). Fundamentals of Economics. Cengage Learning. p. 295. ISBN 1133172997. Retrieved 3 January 2017. 
  4. ^ Einzig, Paul (2014). Primitive Money: In its Ethnological, Historical and Economic Aspects, Edition 2. Elsevier. p. 425. ISBN 9781483157153. Retrieved 3 January 2017. 
  5. ^ Currie, David A. (1981). Macro Economic Analysis. Nirali Prakashan. p. 2.14. ISBN 9380064195. Retrieved 3 January 2017. 
  6. ^ a b Gwartney, James; Richard Stroup; Russell Sobel; David Macpherson (2008). Macroeconomics: Public and Private Choice. Cengage Learning. p. 264. ISBN 0324580193. Retrieved 3 January 2017. 
  7. ^ Economic Concepts and Methods. FK Publications. p. 297. ISBN 818859718X. Retrieved 4 January 2017. 
  8. ^ Reddy, R. Jayaprakash (2004). Advanced Monitory Theory & Policies. APH Publishing. p. 50. ISBN 8176486124. Retrieved 4 January 2017. 

External links[edit]

  • Wiens, Elmer G. (2005). "Linguistic and Commodity Exchanges". First Nations Studies. Examines the structural differences between barter and monetary commodity exchanges and oral and written linguistic exchanges 

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