Comment by FollowingTheDao
4 days ago
> Gold? Dead asset
What? Gold is at a record high, and with inflation it will only go higher.
https://www.macrotrends.net/1333/historical-gold-prices-100-...
4 days ago
> Gold? Dead asset
What? Gold is at a record high, and with inflation it will only go higher.
https://www.macrotrends.net/1333/historical-gold-prices-100-...
> https://www.macrotrends.net/1333/historical-gold-prices-100-...
In nominal terms perhaps, but in inflation adjust terms it's roughly what it hit in 1980:
* https://www.investopedia.com/gold-price-history-highs-and-lo...
https://graphics.thomsonreuters.com/11/07/CMD_GLDNFLT0711_VF...
And there have been long (10y) stretches where it's remained flat: it takes a lot of patience to HODL through something like that. Even if equities (e.g., holding an index fund) are flat at least you get some yield.
With a pure commodity play like gold (or BTC) your only way of returns in price appreciation.
And what was happening in the 80s?
Inflation.
And what’s happening now?
> And what was happening in the 80s? Inflation.
Gold was high in 1980 specifically and dropped after 1980 even when inflation was still high.
Gold also had a peak in 2012: was there inflation then?
> And what’s happening now?
Nothing. Inflation peaked in February 2023 and has been dropping ever since:
* https://fred.stlouisfed.org/series/CORESTICKM159SFRBATL
Gold didn't start going up until September 2023 and has been rising. Gold and inflation are currently inversely related.
Dead in the sense that it is not useful for society.
How is it not useful for society if it’s worth $3300 an ounce? It’s a metal prized physical properties and it’s also used in industry.
My favorite LLM tells me that roughly 85% of the world’s gold is simply “lying around” in the sense of being held as jewelry, bars, coins, or reserves. In contrast, only about 15% of the gold is actively utilized in production or technological applications.
So I'd say it's the same as having cash under your pillow.
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