What Is a Store of Value?

A store of value is an asset that can be saved, retrieved and exchanged at a later time for goods or services. It is one of the three main functions of money, along with medium of exchange and unit of account. Examples include gold, silver, stocks, bonds and real estate. These assets are typically chosen because they have a low rate of inflation over time and maintain their purchasing power better than other forms of currency.

The purpose behind having a store of value is to provide people with something tangible that will retain its worth in the future when it comes time to make purchases or investments. This allows individuals to save up funds now so they can use them later on down the road without worrying about losing out due to inflation or market fluctuations. Additionally, stores-of-value help protect against economic downturns by providing stability during times when cash flow may be tight or uncertain.

See also  SPAC

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