• exploitedamerican@lemm.ee
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    4 days ago

    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

    • jj4211@lemmy.world
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      4 days ago

      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.

      • exploitedamerican@lemm.ee
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        4 days ago

        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.

      • exploitedamerican@lemm.ee
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        4 days ago

        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.

        • Flying Squid@lemmy.worldOP
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          4 days ago

          Insulting me doesn’t change the fact that you claimed it is limited when it clearly isn’t.

          by all accounts the price of gold has increased 7500% in the last 53 years

          See? Not limited.