How about something that destroys the value of gold? Like someone digging a hole in the right place or someone developing technology to do something efficiently that was previously too pricey (like extracting gold from sea water).
Do you think a large industry wouldn’t be devoted to doing those very things? If not, I point you to the crypto mining industry and the fact that 30 years ago, people were told it would be too expensive to extract oil from the Canadian tar sands.
Nothing will devalue gold. Gold is not merely valuable because it is rare but because of its properties and usefulness in technological and industrial applications.
People dig in the right place and find gold all the time but the amount of gold to offset the amount that already exists and reduce its value by any significant amount would have to be astronomical. Unless a meteor that contains ten times the amount of gold that we have dug out of the earth crashes into the ocean we wont se any significant reduction in gold value.
As far as sea water gold extraction now you sound like that dude that got laughed out of shark tank for wanting to nuke the ocean and manufacture artificial hurricanes to extract gold from seawater. Lulz
The value of gold fluctuates but in a limited capacity and the biggest driver of that fluctuation is the overprinting of currency. Even during the gold rush the price of gold held constant.
Gold has always been valued because of its properties and the applications it has in industry, chemistry and technological innovation
Forget gold to dollar for a moment, but think gold to groceries. In 1985 an ounce of gold would be good for maybe 5 typical trips to the grocery store. Today it’d be about 12-15.
The concept of objective, absolute value is generally flawed, but especially gold is pretty distant from even a vague attempt at it.
In 1985 gold was $400 Im pretty sure people were not spending $90 at a trip to the grocery store in 1985. More like 30-50 also when did the us begin heavily subsidizing the dairy and corn industry? How much of the food supply today is just repackaged processed corn? At least a quarter if not a third of the whole grocery store.
Gold is the best example of absolute value, its not perfect for but its better than any other commodity. An ounce of gold at any time in history gets you a months rent in a 2 bedroom apartment in a decent part of town.
Now compare that graph to a graph of the circulating us money supply.
Your reading comprehension isnt too good is it?
Also if we found a large amount of gold the price would go down, but by all accounts the price of gold has increased 7500% in the last 53 years
You see that first spike right at 1980, what happened from 1979 to 1981? The us mint ramped up money printing and by 1981 the usa had printed its first one trillion dollars into circulation and now we print one trillion every 3-4 months. Thanks for proving my point with data though.
I was saying its fluctuation based on supply and demand changes is limited. That 7500% is primarily
If not all driven by money printing madness and the subsequent increase in circulating currency supply. Nine of it was because the demand for gold increased or we figured out new technological chemical or industrial applications for gold.
How about something that destroys the value of gold? Like someone digging a hole in the right place or someone developing technology to do something efficiently that was previously too pricey (like extracting gold from sea water).
Do you think a large industry wouldn’t be devoted to doing those very things? If not, I point you to the crypto mining industry and the fact that 30 years ago, people were told it would be too expensive to extract oil from the Canadian tar sands.
Nothing will devalue gold. Gold is not merely valuable because it is rare but because of its properties and usefulness in technological and industrial applications.
People dig in the right place and find gold all the time but the amount of gold to offset the amount that already exists and reduce its value by any significant amount would have to be astronomical. Unless a meteor that contains ten times the amount of gold that we have dug out of the earth crashes into the ocean we wont se any significant reduction in gold value.
As far as sea water gold extraction now you sound like that dude that got laughed out of shark tank for wanting to nuke the ocean and manufacture artificial hurricanes to extract gold from seawater. Lulz
While gold has intrinsic usage, the value is driven more largely by speculation.
Sorry, are you saying the value of gold doesn’t fluctuate? Since when?
The value of gold fluctuates but in a limited capacity and the biggest driver of that fluctuation is the overprinting of currency. Even during the gold rush the price of gold held constant.
Gold has always been valued because of its properties and the applications it has in industry, chemistry and technological innovation
Forget gold to dollar for a moment, but think gold to groceries. In 1985 an ounce of gold would be good for maybe 5 typical trips to the grocery store. Today it’d be about 12-15.
The concept of objective, absolute value is generally flawed, but especially gold is pretty distant from even a vague attempt at it.
In 1985 gold was $400 Im pretty sure people were not spending $90 at a trip to the grocery store in 1985. More like 30-50 also when did the us begin heavily subsidizing the dairy and corn industry? How much of the food supply today is just repackaged processed corn? At least a quarter if not a third of the whole grocery store.
Gold is the best example of absolute value, its not perfect for but its better than any other commodity. An ounce of gold at any time in history gets you a months rent in a 2 bedroom apartment in a decent part of town.
Sure doesn’t look limited to me.
https://tradingeconomics.com/commodity/gold
Now compare that graph to a graph of the circulating us money supply.
Your reading comprehension isnt too good is it?
Also if we found a large amount of gold the price would go down, but by all accounts the price of gold has increased 7500% in the last 53 years
You see that first spike right at 1980, what happened from 1979 to 1981? The us mint ramped up money printing and by 1981 the usa had printed its first one trillion dollars into circulation and now we print one trillion every 3-4 months. Thanks for proving my point with data though.
Insulting me doesn’t change the fact that you claimed it is limited when it clearly isn’t.
See? Not limited.
I was saying its fluctuation based on supply and demand changes is limited. That 7500% is primarily If not all driven by money printing madness and the subsequent increase in circulating currency supply. Nine of it was because the demand for gold increased or we figured out new technological chemical or industrial applications for gold.
Now do you get what i meant by that?
Sure. Please provide some evidence.
Note: a YouTube video or telling me to read an entire book is not credible evidence.