Gold's been valued highly for thousands of years, except by peoples who did not learn to use metals. I'm curious to know exactly when it became worthless.
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Gold's been valued highly for thousands of years, except by peoples who did not learn to use metals. I'm curious to know exactly when it became worthless.
The Vikings use to berry it at the end of a rainbow.
Since 2000 gold is up 7.7 fold the DOW up 3.4 times (not including dividends).
I used to trade metals mostly gold professionally but am certainly no gold nutter. The inflation we have seen in the last 20 odd years is incredible & I am not talking about the CPI I am referring to the increase of money in circulation which has driven growth almost exponentially but also diluted the value of cash. Remember Enron? A massive $5Bln blow up in the early 2000s, now a bank gets bailed out for $100Bln in the blink of an eye. Central Banks have lost their discipline and constant bailouts for doing bad business ultimately just kicks the can down the road until the problem is too big or too scary to face. Gold did offer that discipline.
The ridiculous NFT market that ballooned in the last few years & crypto craze are all symptoms of a very indiscriminate market.
Interesting times indeed.
Times have changed. You only have to watch the Game Shop doco on Netflix to get a glimpse of how Americans and the younger generation now interact with the financial system.
Good or bad, who knows. Exciting, interesting, absolutely!.
While central banks hold it and believe in it as a currency (or plan b) gold is a currency not an investment and it sits on central banks books like foreign currency and any other reserve. A good currency or money is supposed to be a store of value or a medium of exchange. Gold is not a good medium of exchange but over time has proven to be a good store of value compared to fiat currencies. The dow to gold ratio shows that over time it can fluctuate a lot but I am trying to imagine what a $USD to dow ratio would look like.
https://www.longtermtrends.net/dow-gold-ratio/
SailorRob says "Money is not designed as a store of value over the long term, cash is just for shifting around stuff - liquidity." You should tell that to all the people who are trading their time for money and ask them do they appreciate their time being stolen through inflation? Probably they would not be too worried as they do not understand what is happening.
Here is an example of the currency "gold" as a store of value compared to the $NZ
1966 average house price $8,400 Gold per kg NZD $1,644.47 (roughly) 5.1kgs of gold to buy a house
2017 average house price $526,000 Gold per kg NZD $54,094 (roughly) 9.72kgs gold to buy a house
2023 average house price $920,366 Gold per kg NZD $100,000(roughly) 9.2kgs of gold to buy a house
Have a look on the gold thread for my original post. It is just something I tried, so not very scientific and not much data in fact pretty random because most of my data is all based on a one roof article.
I imagine anyone wanting to buy a house over the last little while would have been better saving their deposit in gold, except that this is not easy and I have never tried it myself.
Percy is confused gold is not an investment it provides no yield it is only a store of value and poor medium of exchange. The greater fool theory also applies to all currencies. I agree you should be investing not saving, especially with the central bankers and economists currently running the show. But if you cannot find a place to invest your funds right now you might be best to put it in gold rather than dollars until the investment opportunities arise.
P.S. sorry I appreciate this is not the gold thread. But gold might be good on a black monday.
They are not trading their time for money for gods sake.
How hard is this??
They are trading their time for other people's time and swapping it for other goods and services in the economy.
Most people live week to week! They hold the cash for 7 days before swapping it all for goods and services.
This has to be a wind up, impossible not to understand this.