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This is why I'm holding gold (as a hedge against the stock market in these weird times). There is a buyer who will buy no matter the confidence in it. Gold is a
by tormeh 5y ago
This is why I'm holding gold (as a hedge against the stock market in these weird times). There is a buyer who will buy no matter the confidence in it. Gold is an important ingredient in, for example, electronics. Your computer and smartphone all have gold in them.
- travisjungroth 5y agoYour reasoning goes against the person you’re replying to. The vast majority of gold’s price is as an investment. If the investment demand went away, the price would plummet. Not 100% because of the industrial demand, but it would be a huge amount. If you want something where the value is backed by industrial use, literally any other metal would be a better choice.
- tormeh 5y agoTrue. It's similar to cryptocurrencies that way, but there is an underlying demand that I find comforting. Bitcoin etc. can be completely abandoned without consequence, but we need gold. Gold will probably always have some value. And as long as it is scarce, that value floor will probably allow its price to recover from a confidence crisis.