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The gold broker likely bought them for $49.5 million and sold them for $50 million, much like market makers in any other market. (Or it could have just been a p
by missedthecue 5y ago
The gold broker likely bought them for $49.5 million and sold them for $50 million, much like market makers in any other market. (Or it could have just been a private party transaction).
Either way, the $50MM still exists and is circulating, facilitating the buying and selling of things. It did not disappear or go out of circulation.
- mbesto 5y ago> The gold broker likely bought them for $49.5 million and sold them for $50 million If they bought a year ago, they not only would have lost money on the transaction just from the transaction alone, but would have lost even more money due to inflation. This is why assets that provide no utility (gold) rarely create value long term.
- missedthecue 5y agowell no one is saying a metal create value, they're a store of value
- mbesto 5y agoFYI - the parent comment implied that $50M of value was created.
- slowhand09 5y agoYou should google "uses of gold".
- jazzyjackson 5y agoIf gold was a useful raw material then the vast majority of it wouldn’t be sitting in basements. Personally I think we should be gilding more religious icons and applying leaf to pages of college text books so they don’t seem like such a raw deal.
- mbesto 5y agoPalantir is going to start making earrings and selling cable wire?