With the Iran conflict, gold is down and USD is up. Bitcoin up some, too? Why has gold lost its lustre?
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Why is the price of gold declining?
- Thread starter border_humper
- Start date
CaptainTrouble
Well-Known Member
border_humperBecause now that O&G is twice as much, people need to exchange their gold for USD to buy the oil they need.
USD isn't going anywhere and gold makes for a terrible currency because of physical shipping and storage costs.
USD isn't going anywhere and gold makes for a terrible currency because of physical shipping and storage costs.
Physical gold also does not earn interest.
CaptainTrouble
Well-Known Member
Not so important since gold is a limited resources and has a natural inflation hedge given this.
The real issue is that gold doesn't earn profit. Investing in gold is dead money. It's equivalent to putting money under your mattress, though since it's gold it's a little better. Still, owning productive companies is better (the means of production) because that earns profit which is an inherit hedge against inflation plus addition earnings. Owning a mining company that had gold mines among its many mines would be a much better play than just gold.
The real issue is that gold doesn't earn profit. Investing in gold is dead money. It's equivalent to putting money under your mattress, though since it's gold it's a little better. Still, owning productive companies is better (the means of production) because that earns profit which is an inherit hedge against inflation plus addition earnings. Owning a mining company that had gold mines among its many mines would be a much better play than just gold.
brutana_dilewski
Exercise is for women.
Unfortunately this isn't the case, they are printing money like crazy and the dollar's purchasing power will continue to plummet.
Gold doesn't have this problem, because there's only so much gold on Earth.
Every fiat currency in history has devalued itself to nothing over time.
When the US loses this war I expect things to accelerate.
d01tg0d0wn
Based Member
buy the dip????
Gotta save up to buy some ground beef for hamburgers this summer.
d01tg0d0wn
Based Member
Costco hotdogs weather the storm of financial volatility. Why buy hamburger when you can eat for 1.50 and even get a free swamp water
my favorite thing about the pop machine at Costco is being an adult that fills his cup in front of kids and adults with a little from each pop option to my cup. Some groan or say thats disgusting and others copy me. I cant even count how many kids I have educated they can even do this that then copied me after. only one parent has scolded me for educating their kid about how to make swamp water. i simply replied its delicious have you even tried it and winked at the kid lol
my favorite thing about the pop machine at Costco is being an adult that fills his cup in front of kids and adults with a little from each pop option to my cup. Some groan or say thats disgusting and others copy me. I cant even count how many kids I have educated they can even do this that then copied me after. only one parent has scolded me for educating their kid about how to make swamp water. i simply replied its delicious have you even tried it and winked at the kid lol
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