Saying that there’s a glut of oil and a dearth of gold based on their prices is pretty reductive too. It’s a simple thought experiment: what would the world lo

Saying that there’s a glut of oil and a dearth of gold based on their prices is pretty reductive too. It’s a simple thought experiment: what would the world look like if there were twice as much X, or half as much X, than there actually is? For X=oil, there would be profound changes. Half as much would require a totally different looking economy. Twice as much would enable big changes. For X=oil, nothing much changes. The industrial and decorative uses continue as they do now. The “store of wealth” uses just have a ~2x difference in $/kg compared to now. Why does the price of gold continue to rise? Because enough people think they’ll be able to sell it for a good price later.