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If you think the value of gold has remained stable, that's only because you're only measuring it during times and places of stability. See how much bread your o
by Nifty3929 1y ago
If you think the value of gold has remained stable, that's only because you're only measuring it during times and places of stability. See how much bread your ounce of gold buys you when there's no bread to buy. In a real crisis, the value of gold drops to near zero, just like fiat money does. No hungry person cares about electronic coating.
The best you can say is that gold is tangible, portable and universal. So you can bring it with you (often in the form of jewelry) as you flee, and it will likely return to value in some other time/place.
- tock 1y agoGold is a safe haven against currency risk thats all.
- qwytw 1y agoAnd yet it wasn't a very good asset to hold between 1980 and 2000, despite quite high inflation during the period. It's nominal value barely moved while real value of USD halved.
- tock 1y agoGold isn't really held because central banks expect its value to go up always. It's held because its safe from other risks like assets being frozen, the currency completely collapsing to 0, etc. Gold has managed to always hold "some value" over centuries. It's a hedge.