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Gold hits all time high

goldprice.org

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Re: Gold hits all time high

#31

Post by xhrpost »

m101 wrote: post #22

The drivers of this in my view are: 1) flight from USD assets given views that one cannot depend on US assets as safe havens 2) central banks increasing gold holdings 3) purchases by Chinese investors as they have few places to invest their money 4) concern around debt levels deficits and democratic process ability to fix this 5) concerns around central bank independence, and hence inflation targeting, being undermin…

>flight from USD assets given views that one cannot depend on US assets as safe havens

I keep seeing this but then I also keep seeing the opposite: https://finance.yahoo.com/news/foreigners-buying-us-stocks-r...

Re: Gold hits all time high

#32

Post by GeekyBear »

m101 wrote: post #22

The drivers of this in my view are: 1) flight from USD assets given views that one cannot depend on US assets as safe havens 2) central banks increasing gold holdings 3) purchases by Chinese investors as they have few places to invest their money 4) concern around debt levels deficits and democratic process ability to fix this 5) concerns around central bank independence, and hence inflation targeting, being undermin…

We've also had four big rounds of Quantitative Easing from the Fed since the financial crisis, with the most recent coming right after the pandemic.

https://www.wikipedia.org/wiki/Quantitative_easing

Re: Gold hits all time high

#33

Post by cousin_it »

kragen wrote: post #14
devmor wrote: post #7

Earlier quoted context omitted.

Yeah I do not see why this is worthy of interest. Gold is pretty much always appreciating.

Gold has a pretty stable value over long periods of time; the famous quote is: > an ounce of gold in Roman times bought a nice suit, and today, an ounce of gold buys a nice suit. Consequently it's the standard safe store of value investors flee to when the world is in upheaval, a role it has played since well before Roman times. Its price being high is a standard indicator of investors fearing miserable times ahead.…

> 02020

Funny how this "long now" date format will stop working in 99999, but the normal way of writing years as integers will keep working just fine.

Re: Gold hits all time high

#35

Post by Ekaros »

snickerbockers wrote: post #19

What is it about gold, anyways? None of its useful properties were known until recently (and mostly overhyped and upsold tbh, at least as far as those stupid cables go). Are we really just instinctively attracted to shiny metals? Or do people like it as a status symbol? (not to act like im above it all, i still have my gold-plated pokemon jigglypuff trading card from burger king in 1999 and i often use golden paint o…

Longest lasting mass psychosis... So at point when everything else looks even more irrational it probably is not worst move. At least there will most likely be some real believers you can pawn it off for something...

Re: Gold hits all time high

#36

Post by breadwinner »

Muromec wrote: post #23
kragen wrote: post #14

Earlier quoted context omitted.

Gold has a pretty stable value over long periods of time; the famous quote is: > an ounce of gold in Roman times bought a nice suit, and today, an ounce of gold buys a nice suit. Consequently it's the standard safe store of value investors flee to when the world is in upheaval, a role it has played since well before Roman times. Its price being high is a standard indicator of investors fearing miserable times ahead.…

An ounce is what -- 3800 USD now? That is indeed a nice suit.

Not very far off: https://www.brioni.com/en/us/ca/suits

Re: Gold hits all time high

#38

Post by czbond »

gwbas1c wrote: post #37

If you want to understand what's going on, I strongly recommend reading Principles for Navigating Big Debt Crises by Ray Dalio. The book is highly researched and explains the pattern we're in, and what we'll see next. https://www.amazon.com/Principles-Navigating-Big-Debt-Crises...

If you don't mind PDF, you can also get it free from the author here: https://www.principles.com/big-debt-crises

Re: Gold hits all time high

#39

Post by cobra19 »

snickerbockers wrote: post #19

What is it about gold, anyways? None of its useful properties were known until recently (and mostly overhyped and upsold tbh, at least as far as those stupid cables go). Are we really just instinctively attracted to shiny metals? Or do people like it as a status symbol? (not to act like im above it all, i still have my gold-plated pokemon jigglypuff trading card from burger king in 1999 and i often use golden paint o…

Originally there was no such thing as property. Some of the first property we had was animals. That's inconvenient enough thanks to lack of portability, but the bigger issue is atomicity. Metals were the intuitive solution to both problems, they can be cut into convenient denominations and also can be melted back into larger ones.

That useful property was well known (and notably, other currencies such as shells and precious stones lacked this). In addition as others have said, gold was both scarce and had a low melting point. However, other metals had these properties too, and sure enough, some cultures did anchor their currencies on metals other than gold.

We are not "just instinctively attracted to shiny metals". FHN.

Re: Gold hits all time high

#40

Post by kragen »

Muromec wrote: post #23
kragen wrote: post #14

Earlier quoted context omitted.

Gold has a pretty stable value over long periods of time; the famous quote is: > an ounce of gold in Roman times bought a nice suit, and today, an ounce of gold buys a nice suit. Consequently it's the standard safe store of value investors flee to when the world is in upheaval, a role it has played since well before Roman times. Its price being high is a standard indicator of investors fearing miserable times ahead.…

An ounce is what -- 3800 USD now? That is indeed a nice suit.

And if you look at the inflation-adjusted graph, you'll see that it was up to 2600 dollars if you adjust for inflation ("2024 dollars"), which was already a pretty fancy suit, and within three years it had dropped by 40% before gradually settling to a low of 400–600 "2024 dollars" from 01998 to 02004. As I said, there's a lot of short-term volatility, though not as much as Bitcoin: https://en.wikipedia.org/wiki/Gold_as_an_investment#/media/F...
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