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> it’s just fascinating that net result of this huge spike is lots of jewelry and old coins being melted into bricks of gold that will sit quietly in secure wa
by mapontosevenths 1y ago
> it’s just fascinating that net result of this huge spike is lots of jewelry and old coins being melted into bricks of gold that will sit quietly in secure warehouses and vaults around the world.
The next logical step in that process would then be for the price to further increase as the actual amount in circulation decreases, right? Doesn't this create a sort of vicious cycle?
- codyb 1y agoTechnically the gold is still in circulation, it's just in contracts on the market instead of in people's closets. If anything, this move probably increases gold market liquidity. At any time someone could take delivery on their futures contracts and receive a shipment of the gold from the warehouses it is stored at.