5 ms·

What's the point of hoarding gold?

by anonu 2y ago

ks2048 2y ago
I'm not sure I understand that completely either. One proposal to buy bitcoin would use money from a revaluation of the country's gold reserves: https://prospect.org/power/2024-11-26-crypto-plot-against-americas-gold-reserves/ https://prospect.org/power/2024-11-26-crypto-plot-against-am...
betaby 2y ago
Gold has a direct usage in electronics and hi-tech in general.
- hollerith 2y ago
  Sure, but if these "direct uses" were the only reason people ever bought gold, it would cost orders of magnitude less.
- yashg 2y ago
  There's an innate human desire for gold. Humans crave gold so much that empires have been built and destroyed over it. That's a utility baked into the commodity. Many cultures hoard gold. Most of that gold will never be sold. Much of it is purchased for ornamentation and most of the time it just sits in a locker. In many cultures it is in fact considered a shame if family gold has to be sold. Think of it this way - if there was no one to buy the gold from you, would you still buy the gold? Answer is yes. Many people all over the world would buy gold even if they could never resell it. The same can't be said about magic internet tokens. They have no inherent utility apart from the hope that a bigger fool will buy it from you at a higher price in future.
  - trogdor 2y ago
    > Many people all over the world would buy gold even if they could never resell it. Why do you believe that?
    - latchkey 2y ago
      Ever been to Vietnam? Literally anywhere you travel in the country, there are shops selling gold. Women store it in their teeth as a sign of strength, wealth, marriage, class, and a way to protect it. Generally not 100% gold, as that would be expensive, but it is some % of gold, and satisfies the belief. [0] The interesting thing for me is that as the price of gold is driven up by wealthy countries, it increases the value for poor people that save in gold. The same thing is happening in bitcoin/crypto today. [0] http://vietnam-phototours.com/blog/the-golden-teeth-of-the-ethnic-minorities-of-vietnam/ http://vietnam-phototours.com/blog/the-golden-teeth-of-the-e...
bee_rider 2y ago
It is mostly unnecessary for a modern country to do, so we mostly don’t, right?

What's the point of hoarding gold?

by anonu 2y ago

What's the point of hoarding gold?

ks2048 2y ago

I'm not sure I understand that completely either. One proposal to buy bitcoin would use money from a revaluation of the country's gold reserves: https://prospect.org/power/2024-11-26-crypto-plot-against-americas-gold-reserves/ https://prospect.org/power/2024-11-26-crypto-plot-against-am...

betaby 2y ago

Gold has a direct usage in electronics and hi-tech in general.

hollerith 2y ago
Sure, but if these "direct uses" were the only reason people ever bought gold, it would cost orders of magnitude less.
yashg 2y ago
There's an innate human desire for gold. Humans crave gold so much that empires have been built and destroyed over it. That's a utility baked into the commodity. Many cultures hoard gold. Most of that gold will never be sold. Much of it is purchased for ornamentation and most of the time it just sits in a locker. In many cultures it is in fact considered a shame if family gold has to be sold. Think of it this way - if there was no one to buy the gold from you, would you still buy the gold? Answer is yes. Many people all over the world would buy gold even if they could never resell it. The same can't be said about magic internet tokens. They have no inherent utility apart from the hope that a bigger fool will buy it from you at a higher price in future.
- trogdor 2y ago
  > Many people all over the world would buy gold even if they could never resell it. Why do you believe that?
  - latchkey 2y ago
    Ever been to Vietnam? Literally anywhere you travel in the country, there are shops selling gold. Women store it in their teeth as a sign of strength, wealth, marriage, class, and a way to protect it. Generally not 100% gold, as that would be expensive, but it is some % of gold, and satisfies the belief. [0] The interesting thing for me is that as the price of gold is driven up by wealthy countries, it increases the value for poor people that save in gold. The same thing is happening in bitcoin/crypto today. [0] http://vietnam-phototours.com/blog/the-golden-teeth-of-the-ethnic-minorities-of-vietnam/ http://vietnam-phototours.com/blog/the-golden-teeth-of-the-e...

bee_rider 2y ago

It is mostly unnecessary for a modern country to do, so we mostly don’t, right?