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This article's thesis is that their is a singular commodity whose price is absolutely and perfectly immobile -- gold -- and that any time the price of gold move
by codefreeordie 4y ago
This article's thesis is that their is a singular commodity whose price is absolutely and perfectly immobile -- gold -- and that any time the price of gold moves, what has actually happened is that the dollar has changed value against the only constant in the universe.
That's just absurd. Gold is a very useful commodity and a great store of value, but its value is no more constant than anything else. If gold's price were perfectly constant, futures contracts for gold would have much less exciting price movements, as the only input to the future price would be the amount of inflation vs the cost of storage, both of which are much easier to forecast than gold price movements.
- j7ake 4y agoAn obvious counter example to the author is if an asteroid hit the earth containing thousands of tons of gold, the price of gold would plummet overnight.
- Proven 4y ago
- VGltZUNvbnN1 4y agoThe prize for everything would plummet because there wouldn't be anything left if a meteor with a mass of thousands of tons after impact would hit earth.