3 ms·
If gold stopped being used as a store of value, we could use the gold uselessly stored in vaults (~80% of all potential mineable gold on Earth) to make things.
by mastax 5y ago
If gold stopped being used as a store of value, we could use the gold uselessly stored in vaults (~80% of all potential mineable gold on Earth) to make things. Even if 1% of gold reserves were sold off each year that's far greater than the current industrial demand and the price would crater.
- Retric 5y agoIn theory that could happen in the short term yes, but the rate of gold used in electronics isn’t fixed. Crater the price and usage skyrockets which could eat up the supply within a lifetime. At which point the price increases again. Which means gold is a long term store of value, which prevents extreme cratering of it’s value. Thus preventing the situation described.