Comment on Is gold investing a scam?

muntedcrocodile@hilariouschaos.com ⁨1⁩ ⁨day⁩ ago

• Trex202@lemmy.world ⁨1⁩ ⁨day⁩ ago

  So gold is inflation-proof?

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  • RamRabbit@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Pretty much. Gold is a time-tested store of value. But it is not a solid investment. (stores of value and investments are not the same thing)

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  • pinball_wizard@lemmy.zip ⁨1⁩ ⁨day⁩ ago

    So gold is inflation-proof?

    Yes, but only to the extent that you can store it, defend it and find a buyer when needed.

    Gold loses value at exactly the rate of the cost of the armed guards you are paying to keep it from being stolen.

    Pay too little, and it takes its value to someone else who is better armed or sneakier.

    And if someone set aside gold for you that you have never seen, no they didn’t.

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  • eightpix@lemmy.world ⁨1⁩ ⁨day⁩ ago

    macrotrends.net/…/historical-gold-prices-100-year…

    In August 1976, gold was $35/oz, close to its historical level. By October 1979, it was $380/oz, over 10× increase — peaking (for the 20th c.) in January 1980 at $668/oz.

    20× return in 3.5 years.

    Gold doubled again in value by December 2010, and again by January 2025 — to $2800/oz.

    The all-time high, 20 October 2025, $4377.58/oz.

    125× return in under 40 years.

    I’ve seen it said: it’s not that gold has gotten more expensive. Its that the USD is debased as a currency against the dollar. The gold standard for USD ended in August 1971.

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  • infinitevalence@discuss.online ⁨1⁩ ⁨day⁩ ago

    No its not, because going up in value means its inflating because the base currency you are pegging its value to is also inflating.

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