3 ms·
> If I am saving up for a Europe trip I want to add some value to a pot every month not gamble so i might make the trip in 2 or 20 years based on luck. You'd m
by scalesolved 8y ago
> If I am saving up for a Europe trip I want to add some value to a pot every month not gamble so i might make the trip in 2 or 20 years based on luck.
You'd most likely not save for this trip in gold.
> a farmer that sells his crop needs to insure he can buy fuel in 11 months for next harvest. Having a little more is nice, but having a little less is really bad.
Also I don't know any farmers using gold as a store while waiting for harvests.
Look at some the gold fluctuations here, mainly large double digit swings:
http://onlygold.com/Info/Historical-Gold-Prices.asp http://onlygold.com/Info/Historical-Gold-Prices.asp
Gold is less volatile due to multiple financial instruments allowing trading/hedging on top of it, millennia of usage as store of value and that governmental institutions also back it as a store of value. Even with all that said it still took dips and swings of:
2015: -11%
2013: -27.6%
2010: 30%
Those seem volatile.
- Retric 8y agoGold is used as a hedge because it often moves opposite of other value stores. Crypto currency's move independent of any specific store of value making them effectively nearly useless as hedges. PS: Adjusted for inflation in 1915 gold was worth $483.23 in 2015 prices, in 2018 it was actually worth $1,060. That's extreme long term price stability as in +/- 1% per year over 100 years go back say 500 or 2,000 years and it stays very stable. That long term stability relates to it's intrinsic value as an actual good, which bounds price movements.