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> Gold? Dead asset What? Gold is at a record high, and with inflation it will only go higher. https://www.macrotrends.net/1333/historical-gold-prices-100-year

> Gold? Dead asset What? Gold is at a record high, and with inflation it will only go higher. https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-...

baxtr 1y ago
Dead in the sense that it is not useful for society.
- FollowingTheDao 1y ago
  How is it not useful for society if it’s worth $3300 an ounce? It’s a metal prized physical properties and it’s also used in industry.
  - baxtr 1y ago
    My favorite LLM tells me that roughly 85% of the world’s gold is simply “lying around” in the sense of being held as jewelry, bars, coins, or reserves. In contrast, only about 15% of the gold is actively utilized in production or technological applications. So I'd say it's the same as having cash under your pillow.
    - FollowingTheDao 1y ago
      If it’s the same thing as cash under your pillow, and it’s useless, then give me all the cash under your pillow.
      - baxtr 1y ago
        Yes, exactly. That’s the idea! I give my cash to you, and, as exchange, I will own a (usually small) share of your company. Then you’ll hopefully be successful and my shares will raise. Good for you. Good for me. Good for society since you created jobs.
throw0101a 1y ago
> https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-... In nominal terms perhaps, but in inflation adjust terms it's roughly what it hit in 1980: * https://www.investopedia.com/gold-price-history-highs-and-lows-7375273 https://www.investopedia.com/gold-price-history-highs-and-lo... https://graphics.thomsonreuters.com/11/07/CMD_GLDNFLT0711_VF.html https://graphics.thomsonreuters.com/11/07/CMD_GLDNFLT0711_VF... And there have been long (10y) stretches where it's remained flat: it takes a lot of patience to HODL through something like that. Even if equities (e.g., holding an index fund) are flat at least you get some yield. With a pure commodity play like gold (or BTC) your only way of returns in price appreciation.
- FollowingTheDao 1y ago
  And what was happening in the 80s? Inflation. And what’s happening now?
  - throw0101a 1y ago
    > And what was happening in the 80s? Inflation. Gold was high in 1980 specifically and dropped after 1980 even when inflation was still high. Gold also had a peak in 2012: was there inflation then? > And what’s happening now? Nothing. Inflation peaked in February 2023 and has been dropping ever since: * https://fred.stlouisfed.org/series/CORESTICKM159SFRBATL https://fred.stlouisfed.org/series/CORESTICKM159SFRBATL Gold didn't start going up until September 2023 and has been rising. Gold and inflation are currently inversely related.

baxtr 1y ago

Dead in the sense that it is not useful for society.

FollowingTheDao 1y ago
How is it not useful for society if it’s worth $3300 an ounce? It’s a metal prized physical properties and it’s also used in industry.
- baxtr 1y ago
  My favorite LLM tells me that roughly 85% of the world’s gold is simply “lying around” in the sense of being held as jewelry, bars, coins, or reserves. In contrast, only about 15% of the gold is actively utilized in production or technological applications. So I'd say it's the same as having cash under your pillow.
  - FollowingTheDao 1y ago
    If it’s the same thing as cash under your pillow, and it’s useless, then give me all the cash under your pillow.
    - baxtr 1y ago
      Yes, exactly. That’s the idea! I give my cash to you, and, as exchange, I will own a (usually small) share of your company. Then you’ll hopefully be successful and my shares will raise. Good for you. Good for me. Good for society since you created jobs.

throw0101a 1y ago

> https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-... In nominal terms perhaps, but in inflation adjust terms it's roughly what it hit in 1980: * https://www.investopedia.com/gold-price-history-highs-and-lows-7375273 https://www.investopedia.com/gold-price-history-highs-and-lo... https://graphics.thomsonreuters.com/11/07/CMD_GLDNFLT0711_VF.html https://graphics.thomsonreuters.com/11/07/CMD_GLDNFLT0711_VF... And there have been long (10y) stretches where it's remained flat: it takes a lot of patience to HODL through something like that. Even if equities (e.g., holding an index fund) are flat at least you get some yield. With a pure commodity play like gold (or BTC) your only way of returns in price appreciation.

FollowingTheDao 1y ago
And what was happening in the 80s? Inflation. And what’s happening now?
- throw0101a 1y ago
  > And what was happening in the 80s? Inflation. Gold was high in 1980 specifically and dropped after 1980 even when inflation was still high. Gold also had a peak in 2012: was there inflation then? > And what’s happening now? Nothing. Inflation peaked in February 2023 and has been dropping ever since: * https://fred.stlouisfed.org/series/CORESTICKM159SFRBATL https://fred.stlouisfed.org/series/CORESTICKM159SFRBATL Gold didn't start going up until September 2023 and has been rising. Gold and inflation are currently inversely related.