You are misinformed on this.
Gold has some inherent value due to its physical properties and use in various products.
(eg. modern electronics, semiconductor manufacturing, medicines, …)
Sure, the use of gold as a common commodity to peg currencies against,
impacts how gold is valued. But, even without that, gold is a valuable commodity.
Sure, with enough energy (and time) any element can be fabricated from Hydrogen.
By this measure, nothing is “rare”,
Practically, the costs involved are what make it rare.
Exactly. But it is not “useless” / “valueless” like this post claims…
It is good to have a well-informed discussion,
However, It will help to have productive discussions
if one avoids posting extreme/absolute statements that are easily proven false.
If you mean to say that the inherent value of Gold is less than the current market-value due to gold beng used to peg currencies, then please say so.
Please don’t claim that Gold is valueless.
OK.
This post made it sound like that though.
Especially when the linked article itself highlights that the practical cost of fabricating gold makes it infeasible to do so (at current value of Gold). So, does that make Gold currently undervalued? Of course not, because there are far more cost-effective ways to access gold.
I cannot vouch for the accuracy of this assertion.
However, if the above assertion is true,
then currently the “cube of 68 feet of gold” is providing more value
than the effective value being provided by the entire farmland in the US.
To put this in perspective,
a lot of the value that Gold is targeting
is a different layer of wants/needs than what farmland provides.
For example, having “the entire farmland of US” at our own disposal,
would NOT enable the 2 of us to have this discussion here in public on TradingQnA.com.
Instead,
a few milligrams of Gold in our PCs,
some of it in the machines in factories halfway across the world,
and still more of it in the coffers of nations,
that enables them to trust each other’s development plans/claims,
…all of this Gold in various places is what is enabling us to have this conversation exactly like how we are right now. That is the value of Gold.
Is Gold the ONLY possible element that can fulfill such needs.
No. However, it is the incumbent / legacy / currently established convention around.
And there are switching costs to replace an incumbent with an alternative - as proponents of cryptocurrencies have found out over the past several years.
Again. 6% is not valueless.
It is hurting. Please stop…
EXACTLY!
Faster turnaround times. Easier processing.
Hence preferred to any alternatives, i.e. the value attributed to Gold due to its use in Tech.
Please decide first whether Gold is rare or not…
…You can’t have it both ways depending on what suits your latest argument better.
Then, please post that,
so we can discuss that further
instead of debating the verifiably incorrect statement posted that “Gold is useless / valueless”.
So, let’s talk in the context of gold backing a currency
Is the following a fair summary of what you have been trying to highlight
in the above posts so far -
a. Gold is currently used to back a currency.
b. Gold has some value attributed to it because of a.
c. If we stop doing a, gold will be “valueless” in this context,
i.e. not have any value attributed to it due to a.
If so,
then agreed.
that is by definition.
else, If something else,
then please elaborate the insightful nuance
that is not coming across from the posts so far.
Oh… Probably these is some confusion in concept and currency and its use.
For that matter at least gold has use in electronics and jwellery. US Doller do not have even those use cases. It still paper.
The six characteristics of money are durability, portability, acceptability, limited supply, divisibility and uniformity. one can read more about it by googling further.
As of now (and historically even before paper currency) gold has these characteristics.
USD had these characteristics when it was co-related with gold. if you understand reckless printing of USD, the durability (wrt time) has gone out of window. This is the reason why Satoshi Nakamoto invented Bitcoin as alternate standard of global currency
Now USA (and every other country’s) central bank governor punches the digits in his account to produce (!) money as the government sees it correct way. Reducing value of currency. Earlier at least they had to ask factory (mints) to print it.
However gold still remains as gold standard as globally accepted denomination.
Gold has always has Its own value , for Industrial purpose , in some way in Chemical & Medical but "Dollar Currency " is of either paper or plastic , if you burn it , its value is “ash” where as if you burn Gold ,it will be gold only and also its value increases
As expected Nifty is coming down to 24000 level , Once the 24000 level breaks it will break Retail investor’s confidence , and panic sets in , Market is expecting Donald Trumps win in us presidential Election , so that the Ukraine Russian war ends and Inflation will come down , But it seems reverse is going to happen so sensing this probably FIIs selling in Indian Market , Nifty tried to pull back near 24100 level , but it seems it will break 24000 level ultimately , and panic sets in for retail traders/Investors
Yes off course Today market is responding to the US election result , Since Trump is leading after a small reaction market is bouncing back Since already Trump has got 51% voting share at the end of the trading day market will reach new high
After 6months , now the present conclusion is that , The Anti Indian , Undemocratic party of USA is out of power for another 4 years may be Indian Techies & NRI s are disappointed , who are the supporters of DP of USA , any way now coming to Nifty there will be a consolidation on Indices , there will not be a one way direction for the Indices , i am expecting more choppiness on Indices
in my view, this was all pre-planned. the us exactly know how to run their evil plans. they tried to isolate a big country and failed miserably, so the trick was to find a way to escape this position and get back the support of people (and the world). thus they divide the government and blame the old batch. now everyone thinks “good” people are elected (this is exactly what they wanted) but nothing’s going to change—the backend/deep state remains the same which we will see in time. this was all planned during covid to get kamala elected as nominee if they fail in their plans (which they did) and make her lose to try to portray the new ones are the good ones now. all are the same. their plan always is to create havoc and destroy countries (and soldiers committing crimes against women in other countries), then send money in millions to “rebuild” it, thus saving and pocketing on people’s taxes, creating an economic crisis since everything depends on the dollar, trying to create an unregulated system like crypto (and the fake story of bitcoin japanese creator) to get rid of their debt, trying to dominate and not allow others to grow, printing money when they want, etc. etc. they are pure evil. they won’t show anything on social media, as all of it is controlled by them. and inr will never be near dollar; get this thing out of our heads—our ministers are too corrupt. if there is no difference between dollar and inr these corrupt ministers can never enjoy status than a normal person.
*when i say usa i mean the usa gov and not general public.
I think there is one more ATH is remaining both in nifty and banknifty before this correction expands. Banknifty may touch 58k line from this support ranging from 49700 to 50200.
However if breakdown occurs of this support, then we can expect some prolonged bigger correction.
Probably , from yesterday , behavior of the market is different , expecting some thing , i feel Market will correct some more ,Market is acting differently
To my fellow Indians is that we have lot of difference among s us , So Be unite , Don’t fight in front of other countries, or in front of Neighbors or in front the people in your locality , Fight inside your house and solve the issue !!
as globally accepted denomination.
Probability of Harris win is 40 out of 100