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"Generally no one is “consuming” gold bullion." Huh? Gold bullion is an input to hundreds of industrial processes. If it weren't, why would gold have any value
by bwestergard 8mo ago
"Generally no one is “consuming” gold bullion."
Huh? Gold bullion is an input to hundreds of industrial processes. If it weren't, why would gold have any value?
- nerdsniper 8mo agoThat's not consumption as it applies to sales tax rules. In almost every jurisdiction, raw materials and inventory purchased for resale or industrial processing are exempt from sales tax.
- deleted 8mo ago[deleted]
- Ekaros 8mo agoWhich is why Value added tax is superior system. Though gold is in some jurisdictions treated different when it is considered investment. But for rest it is like any other metal.
- ta9000 8mo agoWhy would gold, something that’s had value for thousands of years prior to the Industrial Revolution, have any value?
- nitwit005 8mo agoEven in ancient times it was consumed to make jewelry and decorations. People used to go to the goldsmiths to sell their gold.
- ta9000 8mo agoSorry I clearly should have added a /s.
- irishcoffee 8mo agoWouldn’t that be for the same kinds of reasons things like purple dyes were valuable: rare to find, hard to harvest, hard to transmogrify (insect/sea life guts into clothing dye, gold into chains or other wearables), hard to break, which all culminates into a quick visual indication of wealth. Now? Gold is a great conductor of electricity (of course silver is better) and some people still like wearing lots of flashy jewelry. I have no earthly clue why people find it valuable to invest in other than it’s like bitcoin: it’s valuable because everyone else also thinks it’s valuable. Never once have I read a quarterly progress report from the CEO of the element “gold” outlining profit strategies for the next year.
- mr_toad 8mo ago> I have no earthly clue why people find it valuable to invest in other than it’s like bitcoin: it’s valuable because everyone else also thinks it’s valuable. Unlike bitcoin there is a price “floor” because of its use in jewelry and industry. Even if no one hoarded it, it would still have some value.
- ta9000 8mo agoJust because it doesn’t generate a yield doesn’t mean it doesn’t have value. Fresh drinking water is incredibly valuable and will be more so as its supply dwindles.
- WalterBright 8mo agoGold doesn't corrode away. If gold was cheap, my roof shingles would be made of gold. You'd also have gold wires instead of copper wires.