Yeah that’s why I pointed out that possibility in my first post dude
Precious Metals
- Thread starter president
- Start date
Of course it does. It may be small or incremental, but it's has the stock to flow of a historical commodity. In other words, over time, since its supply increases, it is worth less compared to a given standard that doesn't change (much).
Yes gold supply rises on average by about 1 - 2% per annum but the worlds population so far at least continues to grow as does total production/gdp over time therefore 2% increase in supply doesn’t correlate to 2% loss in purchasing power. I think you are oversimplifying the situation
That's why I compared it to a given standard. What's more, now that BTC is on the scene, of course it is worth much less. While it may go up in this instability period, it is going up less than it would have, and that will only also increase with time. Diminishing returns kind of thing
These pictures make me happy in the face area
Central banks buying gold means that we are in times of major confidence loss. You'll do well with it, just be careful with "miners".
Caduceus
Heritage
It also could mean the majority of the countries of the world will all soon jointly agree to re-value all gold in the world to a much higher rate to pay off all their debts and/or increase their nation's overall wealth.
Yes it could, they are both happening, as it turns out. The confidence loss is in the deepest, most liquid "asset", which is strategic as well, the US Treasury market.