6 ms·
A new book about humanity's obsession with gold
https://archive.is/ShyUM https://archive.is/ShyUM
- Schlagbohrer 6mo agoI've read elsewhere that one of gold's biggest virtues as a store of value on planet earth is that it isn't so rare as to be useless, but it's rare enough that it functions as currency or high value storage. A goldilocks material for the purpose of wealth transfer and storage.
- jcarrano 6mo agoIt is also relatively easy to work, since ancient times. Iridium is the rarest metal, so rare and hard to work that it is not practical.
- djtango 6mo agoYes! Exactly - there are plenty of other rare metals but many of them are really hard to work with. Iridium, Rhodium and Platinum are plenty rare but mankind has lacked the technology to do anything with them for most of history
- PowerElectronix 6mo agoIt's also chemically inert and very dense, so a coin/ingot that weights a certain amount is smaller and can be stored for long periods of time. It's so dense that it's pretty much forgery-proof, as any material you use in the forgery is either more expensive or less dense.
- trixn 6mo agoGold never really served as a currency, rather as collateral. If gold is a currency than any marketable asset is. A good definition of "currency" or "money" would be one that distinguishes its characteristics from commodities and the only useful one I know of is the "credit theory of money". Money is a promissory note, an accounting device and that is true for at least 5000 years of monetary history tracking it back all the way to ancient babylonia. Throughout that history money has taken many forms reaching from clay tablets, metal coins, tally sticks, paper money all the way to digital currency but all those share a common principle which is that they are all records of indebtness, promises to pay. Barter is not and has never been the default mode of commerce at all or a anthropologist Caroline Humphrey put it: “no example of a barter economy, pure and simple, has ever been described… all available ethnography suggests there has never been such a thing”. Barter as a form of commerce pre-dating monetary economies is a myth, a post-hoc rationalization of how money might have came about from the perspective of somebody that already lives in a monetary economy and it's entirely an armchair theory that does not rest on any historical and anthropological evidence. What is true is that between parties that do not have an established relationship barter occurred and it is true that people seek to hold assets and demand tradable collateral during periods of unrest. But barter has never been a primary way to do commerce between parties that had a long-standing relationship. A theory of credit-money is way more useful to explain real world behavor than a metalist approach is. Gold isn't used in daily transactions, it primarily sits in basements and is also is not an input to allmost all of production. What makes us rich in real terms is not gold but knowledge, machines and technology.
- sandworm101 6mo agoIs this an ad for shady "buy gold" investment scams?
- hackernudes 6mo agohttps://archive.is/ShyUM https://archive.is/ShyUM Article is a brief review of the book "The Secret History of Gold" by Dominic Frisby.
- carlosjobim 6mo agoName one thing in the universe which is better than gold? Tip: You can't.
- voxlax 6mo agoIron. For the purpose of building bridges.
- olau 6mo agoDiamonds? You can use them in a drill bit.
- ReptileMan 6mo agoOxygen
- carlosjobim 6mo agoGold is a noble metal and doesn't react with anything. Oxygen is one of the most ignoble gases, and reacts with almost everything.
- euroderf 6mo agoNothing is better than gold. A ham sandwich is better than nothing. Therefore a ham sandwich is better than gold.
- nh23423fefe 6mo agothe scholastics were right about everything
- rwmj 6mo agoUranium? Tricky to fuel a nuclear reactor with gold. Hydrocarbons? Everything from making life to providing energy. Silicon? Making silicon chips. Oxygen? I like breathing.
- nkrisc 6mo agoYou’re lost in the desert, with no food or water but only a lump of gold. Everything is fine because nothing in the universe is better than gold.
- drhagen 6mo agoIt is interesting that gold was able to retain its value after the industrial revolution. It could have gone the way of aluminum, once twice as valuable as gold, but now used in disposable drink containers. At the time of the alchemists, there was no way to know that some metals were actually distillable from common rocks and others genuinely rare and impossible to manufacture with even quite advanced technology. EDIT: Aluminum itself may not be the best counterexample to gold as it was not discovered until the industrial revolution was well underway.
- 3form 6mo ago>Aluminum itself may not be the best counterexample to gold as it was not discovered until the industrial revolution was well underway. I think also the scarcity plays a factor, the estimates that I'm seeing after short search being that there's about 10,000x more processed aluminum in the world than gold.
- pjc50 6mo agoThere is now, but it wasn't really extractable at all until electrochemistry.
- AnimalMuppet 6mo agoRight, but it was still there to extract. All it needed was electrochemistry. Whereas with gold, it isn't there in the rocks - not in the same amounts. No future chemical wizardry is going to make it extractable, because it isn't there to extract. To make gold more abundant is going to take transmutation, which is a much bigger ask. Now, if you want to say that the ancients didn't know that aluminum was there and gold wasn't, and therefore lucked out by picking the one that wasn't there, I would agree with that.
- mplanchard 6mo agoThe GGP said “10,000x more processed aluminum in the world than gold,” which the “processed” part, which is I think what GP was responding to: of course the scarcity of available gold relative to aluminum drives its value, but that relative scarcity only exists due to modern electrochemistry: previously, “processed” aluminum and gold were similarly scarce. People talk about stuff like extracting gold from seawater, so it also isn’t a given that the scarcity difference will always remain what it is.
- clearstack 6mo ago[flagged]
- rationalist 6mo agoPaper/plastic currency (cash) has 0 FCF, 0 earnings, 0 dividends. The whole thesis is you trade it at a deprecated rate later. You can trade gold and cash with people a lot more easily than an equity in your brokerage account.
- karlgkk 6mo agoYeah man you missed the point. Gold is not good as an investment vehicle. As a daily currency, it also has sharp downsides, but at least it’s not all bad.
- spwa4 6mo agoI think the point is that when it comes to investment vehicles, gold generally beats cash. Oh and that means that in the last 20 years or so (ie. including the period where it didn't appreciate much), physical gold beats a balance in bank accounts. Inflation means "interest" on gold, measured in reliable currencies like USD or EUR, is at least 4%. Far more than you will get from any bank. Of course this goes for anything, so you might want to select something with less regulation attached to it. On the other hand, gold is really dense and "liquid" (easy to sell), which are great advantages to have for a store of wealth. And then there's the recent history of gold prices (which is due to the third world attempting to use anything but dollars but not succeeding at it, but one assumes it will end) But yes, gold makes less than you'll probably get on the S&P500.
- rationalist 6mo agoI'm sorry, I didn't make my point well, that's on me. My point was that gold isn't just an investment.
- XorNot 6mo agoNo the thesis of cash is that it's a legally enforced means to extinguish debts within a certain legal jurisdiction. A court cannot generally find that I must furnish someone with some weight of gold for example but they can find a monetary value in sovereign currency which I must supply.
- stavros 6mo agoWhy is everything "wild" and "cooked" and "dead" these days? It seems that every title or text I see has those words. I guess it's the Claudeification of everything.
- incognito124 6mo agoIt's just Gen-Z speak, nothing to do with Claude (other than being a vessel for said speak)
- detourdog 6mo agoI’m gen-x and used wild in of my my HN comments and it seemed to trigger some responders. I was using as a synonym for unexpected. Next time maybe I’ll use whacky instead.
- stephen_g 6mo agoI like wild, it’s a fun word. No need to change if you don’t want to just on account of some grouches here!
- shermantanktop 6mo agowe GenX-ers will be placated by any mention of Oscar the Grouch.
- cindyllm 6mo ago[dead]
- mgcross 6mo agoI'm gen-x too (56) and remember wild used heavily in the mid to late 80s. Wild to hear it used so liberally once again!
- jmclnx 6mo agoI have mentioned this in the past, we are on an "energy" standard as opposed to a "gold" standard and to me, in reality, we have been since the industrial revolution. Just Gold and Currency is a means for people to access energy. Until recently it was an "Oil Standard". But now we are in transition from Oil to Renewals. I think that transition is causing some if not most of the political issues we are having now. With renewals, the source is always available and everyone just needs to purchase the means of accessing it once. With Oil, you need to constantly "pay" someone to get that energy, so many people/companies know their gravy train is ending and they are doing all the can to keep us using fossil fuels. Also there is an on-going struggle on who produces the items needed to access sun and wind power. Right now China is easily winning that struggle.
- trippsydrippsy 6mo ago[dead]
- hmg-ocean 6mo ago“Mr Bond, all my life I have been in love. I have been in love with gold. I love its colour, its brilliance, its divine heaviness. I love the texture of gold, that soft sliminess that I have learnt to gauge so accurately by touch that I can estimate the fineness of a bar to within one carat. And I love the warm tang it exudes when I melt it down into a true golden syrup. But, above all, Mr Bond, I love the power that gold alone gives to its owner — the magic of controlling energy, exacting labour, fulfilling one’s every wish and whim and, when need be, purchasing bodies, minds, even souls. Yes, Mr Bond, I have worked all my life for gold and, in return, gold has worked for me and for those enterprises that I have espoused. I ask you,’ Goldfinger gazed earnestly at Bond, ‘is there any other substance on earth that so rewards its owner?’”
- mikewarot 6mo ago> Its well-documented contributions to deflationary and financial crises, including the Depression, go curiously undiscussed in this book. Why is deflation viewed as such a bad thing? If you've got savings in a deflationary time, your money becomes more valuable, not less. Don't we want to encourage savings?
- AnimalMuppet 6mo agoIf you have debts instead of savings, deflation is utterly ruinous. An awful lot of people have debts. Deflation does far more damage than inflation. This is why the Federal Reserve fears deflation a lot more than deflation.
- trixn86 6mo agoActually no. Money is probably the most misunderstood thing in the world. While saving money seems logical from an individual perspective on the macro level of the economy it can be a huge problem because everybodies income depends on money constantly being spent. This is a classic case of a "fallacy of composition". To illustrate that it's often helpful to think in extreme scenarios. Imagine every household starts to save 100% of its monetary income. What does that mean? It means that nothing is sold anymore and companies have 0 revenue which will soon lead to a complete collapse of the economy and everybody becoming unemployed and loosing all their income as well unless the companies will take on debt to keep paying the wages/profits (which they will not do when there is no demand for their products). Money needs to be spent or else demand will drop and the economy can enter a vicious downward spiral (a deflationary collapse / debt deflation). The most impressive example of that was the great depression. If some sector of the economy wants to net save (usually those are the households) to keep the same level of economic activity (and therefore jobs and income) somebody else needs to spend money they don't have, i.e. they need to go into debt. The main issue is that in a society with division of labor there is no mechanism that keeps saving and investing in line so that employment and income is kept on a stable level. The mainstream neoclassical economic theory claims that the interest rate is always and automatically making sure that for every dollar saved someone else will invest it but this is based on the assumption that investors have infinite and complete knowledge about what everybody else will do in the future and that the economy will always and necessarily tend towards an equilibrium state of full employment. They are obsessed with "equilibrium" which is why in mainstream publications you will find that word everywhere. But in reality the economy is a non-equilibrium complex system with pro-cyclical feedback loops and all the interesting characteristics worth studying are non-equilibrium behaviors of the system. Some recommended literature regarding that topic: - The two essays "What is money?" and "The credit theory of money" by Alfred Mitchell-Innes - "The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle" by Joseph Schumpeter - "Debunking economics" by Steve Keen - "Can it happen again?" by Hyman Minsky - "Debt: The first 5000 years" by David Graeber Money is credit. It's not an asset. Gold or Bitcoin are not money, they are an asset. The economy is credit-based, it's not a barter economy.
- theturtle 6mo ago[dead]
- Henchman21 6mo agoNot one mention of the Annunaki anywhere!
- johnea 6mo agoI'm amazed noone has quoted Warren Buffet on this subject: “[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” The principle point being: "It has no utility". Like crypto, it's primary function in the modern economy is financial crime...
- Ferret7446 6mo agoBeing a store of value is utility.
- johnea 6mo ago> Being a store of value is utility. It has utility because it's a store of value, and it's a store of value because it has utility because it's a store of value, and it has utility because it's a store of value because it has utility because it's a store of value... That explains it perfectly...
- marbro 6mo ago[dead]
- jostylr 6mo agoHe did a podcast with Tom Woods (libertarian historian) about the book: https://youtu.be/soJEdxjrYAw?si=gIt7Y3PB5H-zhw1f https://youtu.be/soJEdxjrYAw?si=gIt7Y3PB5H-zhw1f