(Crazy) economy news

[Skybird]

Originally Posted by Catfish

Gold is only valuable as long as all agree that it is, just like any currency.
It's "worth" will continue to rise and fall, and in case of a real crisis you will not be able to buy food with it. Or maybe you are, like a kilogram for a loaf of bread.

Now compare to a Rucksack of Euro or Dollar notes, and compare to the history of the past centuries or millenia.

Paper moneys come and go, and over their lifespan, their value developement knows only one direction: downward. Compared to gold, the Euro has lost already 80% of its starting value, the dollar since the time immediately before WWI even over 95%. Gold stays since millenia. Only 2-3% of gold traded per year, is newly mined gold, the rest is old gold that just changes the owner. - How much newly created book money floods the market every year?


Estimations on how much gold has ever been mined in total in human history, range from 190 thousand to 245 thousand tons. In total. In all of mankind's history. Its a limited comodity for us on planet Earth. That limited availability is part of its success story that lasts since millenia.



And if it would be so worthless as you imply, please explain why central banks have moved in recent years to buy it in huge quantities, while handing out their fraudulent paper stuff inflationary and in careless ammounts and biblical quantities. Because paper money has worth and gold has not? Are they stupid, then? That they sold parts of it this year is due to the need for cash in corona times.


Voltaire said that every paper money sooner or later reaches its natural intrinsic value: nill. Gold however over the course of history has acchieved a net gain. Over centuries and millenia. It simply is "wertbeständiger" in people'S appreciation and preference. Kill an industry, destroy a company, and your stocks are worth nothing anymore. Destroy a state, brign down a bank system, and bank notes and bonds are worth nothing anymore. But certain other things still get traded, and keep their value. Thats why they are wanted,m always have been wanted, and for the forseeable future always will be wanted. Granted, if we find a 1 billion tons of gold reserve on the moon, that would do the trading value on planet Earth no good - but we have not found a billion tons of gold on the moon so far.