/biz/ - Business & Finance

>>50629667
Do the retards on here think they’re smarter than the central bankers? Because that seems to be the the common opinion. Gold is the only currency that has a set limited amount in existence, that’s where it’s worth comes from. Its worth is derived for the fact that it’s agreed upon as a representation of value and that it’s supply (and therefore value) is very hard to change on a large scale so that value is stable (this is where bitcoin got it’s premise from). Golds allure is its stability as a store of value. Think of gold as locking in your gains. Whereas holding anything else is like keeping your crypto on an exchange. Yes you can make more money trading other things, like fucking dogecoin. But if you make money with dogecoin and the usd shits the bed and you haven’t converted it to something that actually holds value like real estate or gold, you might as well have made nothing with dogecoin, because your usd gains have evaporated with usd. This is why central banks store most of their “gains” in gold. Because everything else will eventually be worthless at some point in time, from moment to moment you don’t know when it will strike. Which is why the graphs above are retarded, because it’s comparing apples to oranges. Gold is a store of value that also has a return, while stocks are essentially gambling for return alone and a much higher risk store of value. Yes you can make a lot of usd making good stock decisions compared to just holding gold. No one’s arguing that’s not true. But when shit goes bust everything you “earned” anyway might be worthless in a flash, when you need it most. Stocks are higher risk and do on average yield greater potential to increase your currency or gold at time of sale, but you have to pray you’re the average person, and pray you aren’t living in one of the time periods when shtf and everything you didn’t store in gold value goes bust