ERICOPOLY Posted November 29, 2020 Share Posted November 29, 2020 Further, why is gold a suitable money when rising real production would be rewarded with deflation? It's not ideal money if a country relies on deficit spending to fund the government expenses. Think about earning $1000 worth of gold (or any fixed base currency). Ten years from now deflation results in increased purchasing power because you can buy more with your $1000 of gold if you saved it. Inflation, on the other hand, is a tax. I already acknowledged that deflation is good for the individual that hoards gold. There are alternatives to cash if you worry about inflation, so it's not a binary debate between gold or cash as currency. Link to comment Share on other sites More sharing options...
rb Posted November 29, 2020 Share Posted November 29, 2020 As for jewelry as far as I know platinum is cheaper than gold. Maybe that's why it's more popular these days ¯\_(ツ)_/¯ People are shelling out more for the platinum settings. Plat $890: https://www.bluenile.com/build-your-own-ring/petite-solitaire-ring-platinum_19010 18k gold $750: https://www.bluenile.com/build-your-own-ring/petite-solitiare-ring-18k-yellow-gold_44709 Platinum: $971 per once Gold: $1,783 per ounce Nice hustle for jewelers Link to comment Share on other sites More sharing options...
ERICOPOLY Posted November 29, 2020 Share Posted November 29, 2020 As for jewelry as far as I know platinum is cheaper than gold. Maybe that's why it's more popular these days ¯\_(ツ)_/¯ People are shelling out more for the platinum settings. Plat $890: https://www.bluenile.com/build-your-own-ring/petite-solitaire-ring-platinum_19010 18k gold $750: https://www.bluenile.com/build-your-own-ring/petite-solitiare-ring-18k-yellow-gold_44709 Platinum: $971 per once Gold: $1,783 per ounce Nice hustle for jewelers ROLEX Lady-Datejust 28mm: $6,750 in steel $24,650 in yellow gold $44,050 in platinum https://www.rolex.com/watches/configure.html#/lady-datejust/m279178-0006/material Link to comment Share on other sites More sharing options...
rb Posted November 29, 2020 Share Posted November 29, 2020 As I said nice hustle. As an aside isn't it funny how we know the prices for lady jewelry while my watch is in some drawer somewhere? Link to comment Share on other sites More sharing options...
JRM Posted November 29, 2020 Share Posted November 29, 2020 well then it's not money https://quickonomics.com/different-types-of-money/ You're describing #2. Link to comment Share on other sites More sharing options...
rb Posted November 29, 2020 Share Posted November 29, 2020 well then it's not money https://quickonomics.com/different-types-of-money/ You're describing #2. Yeah... I'm gonna go with the actual definition of money and not the one from quickonomics.com Link to comment Share on other sites More sharing options...
JRM Posted November 29, 2020 Share Posted November 29, 2020 well then it's not money https://quickonomics.com/different-types-of-money/ You're describing #2. Yeah... I'm gonna go with the actual definition of money and not the one from quickonomics.com Maybe this would be more helpful: Link to comment Share on other sites More sharing options...
no_free_lunch Posted November 30, 2020 Share Posted November 30, 2020 Gold and crypto seem to have diverged with crypto moving up while gold has pulled back significantly. Dies this mean gold is a buy? Or is crypto moving up for reasons other than inflation hedging? To go back to JRMs reasoning. Don't forget to factor in crypto. If a large portion of gold is to hedge inflation and crypto can start to take that on then what does that mean for gold demand? Link to comment Share on other sites More sharing options...
JRM Posted November 30, 2020 Share Posted November 30, 2020 Gold and crypto seem to have diverged with crypto moving up while gold has pulled back significantly. Dies this mean gold is a buy? Or is crypto moving up for reasons other than inflation hedging? To go back to JRMs reasoning. Don't forget to factor in crypto. If a large portion of gold is to hedge inflation and crypto can start to take that on then what does that mean for gold demand? Crypto has certainly become more accessible to the individual investor. Just open up PayPal app. Buying physical gold, especially in quantify can be difficult and possibly unsafe. Other than that, I'm definitely not qualified to speculate why one is up while the other is down. Link to comment Share on other sites More sharing options...
Gregmal Posted November 30, 2020 Share Posted November 30, 2020 IDK, but off of what was said earlier, which future generations become the gold bugs necessary to keep the greater fool facet alive? Best guess, the ones who's greater fool investment is crypto...thats who. Link to comment Share on other sites More sharing options...
JRM Posted November 30, 2020 Share Posted November 30, 2020 What I don't understand about Bitcoin is what happens after the 21e6 Bitcoin is mined? The miners are compensated by receiving Bitcoins. Does this mean the transaction cost goes up to some ridiculous level overnight? Link to comment Share on other sites More sharing options...
thepupil Posted December 1, 2020 Share Posted December 1, 2020 a reasonable article discussing gold and its relationship to stocks and inflation. https://www.morningstar.com/articles/1011134/gold-is-a-dull-investment Link to comment Share on other sites More sharing options...
JRM Posted December 2, 2020 Share Posted December 2, 2020 https://podcasts.apple.com/us/podcast/the-end-game-ep-12-fred-hickey/id1508585135?i=1000501094047 Recent interview on Grant Williams podcast. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted December 2, 2020 Share Posted December 2, 2020 Gold and crypto seem to have diverged with crypto moving up while gold has pulled back significantly. Dies this mean gold is a buy? Or is crypto moving up for reasons other than inflation hedging? To go back to JRMs reasoning. Don't forget to factor in crypto. If a large portion of gold is to hedge inflation and crypto can start to take that on then what does that mean for gold demand? Crypto is absolutely moving up for reasons other than inflation hedging. Paypal announced crypto adoption a few weeks back and it has been estimated that they've been sucking up 70% of new Bitcoin supply since. If one player is sucking up 70% of new supply, in addition to that supply being curtailed with the halving of production earlier in the year, there is NOT a lot of new BTC supply going around to satisfy this newly forming institutional demand. Demand from the likes of billionaires (Druckenmiller, Paul Tudor Jones, etc), investment management companies (Blackrock, Vanguard, etc) and companies involved with adoption and/or payment processing (Square, PayPal, MicroStrategy) are not small sums and will likely continue, and potentially accelerate, with the growing acceptance of the currency. Prices will have to move higher to incentivize sellers to meet the demand. Lastly, on the comment of gold demand moving to crypto - Im sure a small amount of gold demand is moving to crypto. But the gold market is measured in several trillions and BTC market cap measured at $342 billion even at all time highs. If even a small amount of gold demand moves to crypto, it will shoot crypto into the stratosphere and incentivize the selling back into Gold at some point as relative prices will be out of whack. There's enough space in the world for both of them just like there is enough space in the world for silver and platinum alongside gold. Link to comment Share on other sites More sharing options...
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