Topic: Gold vs. U.S. dollar - page 2. (Read 602 times)

Obviously both have value, but comparing them to more specific things might also be needed in terms of investment. If your goal for that question is to find the right investment instrument, then I would advise you to choose gold as a long-term investment asset.

But so far I have seen that the question is quite vague because it is only a comparison and I am only guessing that you want to choose one of them as your investment asset and I see that you really like gold.

Gold is always associated with the value of the dollar in various countries and the fact that the price of gold continues to fluctuate following the movement of the dollar which is also volatile. So I feel confident that the dollar will continue to influence the price of gold and still let it be controlled. If we say the dollar can control the price of gold, is that statement wrong?

I think you should first define what you mean by the "dollar beating the value of gold"

In general, the whole question doesn't make a lot of sense on its own for the simple reason that gold is valued or priced mostly in dollars, American dollars. So, technically speaking, gold can't possibly beat something which it is valued in. However, if you mean something else, for example, real value of gold as measured against a wide basket of goods, which is a different can of worms (pardon the pun), and then compared against the dollar inflation, it will turn out that gold has been somewhat underperfoming during the last 40 years

Put differently, if you bought some inflation-adjusted (Inflation-indexed, or inflation-linked) bonds (say, TIPS), you would be better off on average than if you went all gold instead (though that largely depends on your exact entry and exit points)

i think we have to understand about currency rate that has influence to economic activity. in basic economic law , each currency rate will influence to countries export and import result.if currency to strong than other countries , exportir worry they product will not saleable. so from question above, if dollar stronger than gold , i mean dollar has value more than $1500 . no one countries will let it happen. if this happen i am sure central bank will make intervension in market to stabilize their currrency so export and import could balance.

1 Bitcoin is equal to ten thousand US dollars at the time of his writing and that's just something which is incomprehensible and if the USD had a mouth and face, he would never show his face to Bitcoin which is equal to ten thousand times stronger and bigger than it is lmao. 10*10^3 USD is equal to a single Bitcoin and the competition is already over lol.

Why would you compare the two? I mean yes, they both have value but when it comes to value, I don't think dollars can surpass and beat gold. Because dollars are being issued by the government, so if their economy weakens then the same for their currency. But with gold, it's a natural resources that won't lose its value. Unlike paper money, gold won't depreciate because it will always have a value. The supply of paper money depends on the circulation but the supply of gold are just limited so in the future it will be harder to mine gold. But money like usd, they can just print if they need to.

This is simply the reason as to why it can't beat gold price-wise. The price difference is immense that even years after a nice economical growth dollar wouldn't even reach gold's value because it appreciates in value at the same time. And besides, I don't know why people would hope to increase dollar value, after all it's alredy the standard money for all types of currency there is in this planet. If you want to create money, we have to double checl and compare it to dollar first to see if it could fare well by itself. And since US dollar and gold are pretty much governed by the same system, they wouldn't want to increase dollar price because if then, people will start hoarding it and keeping it. Which would cause a disruption in the supply of money in America, if that hapoens the government will be forced to create more money which destroys the ecosystem too. And it'll cause inflation at the same time, rendering US Dollar's value useless if it goes on.

I think it is impossible for a dollar to beat the value of gold, even we use dollar for our daily lives in exchange for goods and services because the price of a dollar is stable and it has a unlimited supply, whole gold is mostly use for long-term investment and it only has a limited supply that makes it have a high value.

Well, I think that is impossible. As Gold is something that is in use for every single gadget or technology that we are using, it will be so expensive in time. On the other hand, the dollar is under the government, all of the fiats are being controlled by the government so that its value will not be so slow since that can affect their economy largely. Saying that dollar will never outrun gold in terms of its price.

Gold prices are set all over the world. Gold is a financial commodity traded all over the world. Gold prices are not determined locally

Gold prices are constantly changing all over the world, in motion. The price of 1 gram of gold is made around the world on a 24-hour basis. Instant prices vary and can be quickly converted into cash. In short, economic developments all over the world affect gold prices.

WHAT IMPACTS GOLD PRICES?

The country that gives the most effective direction to gold prices is the USA. Economic events in America, policies of institutions in America, ups and downs affect gold prices. With the effects of the crisis in America in recent years, gold prices have increased and their effects still continue. The change of gold prices as an investment instrument depends on these factors.

HOW CAN GOLD PRICES BE IN THE CRISIS PERIOD?

Gold has price effects in the field of jewelery, namely jewelry. Around 3000-3500 tons of gold need arises all over the world. World Turkey, India and countries are showing strong demand for jewelry in countries such as China. This demand may be seasonal or generally needed. In these countries, gold prices may be affected by the need for gold in the spring and summer months in the wedding seasons. The industrial need for gold also has an impact on gold prices, although it is not as effective as other factors. During the crisis, the demand for gold and industry decreases. Because in this period, demand decreases as gold prices increase very much. Investment demands increase, which is effective in the rise of gold prices.

DOES THE VALUE OF THE DOLLAR AFFECT?

In international markets, the value of gold is expressed in dollars. Accordingly, the decrease or increase in the value of the dollar affects the gold prices. When the dollar gains value compared to the euro, the gold prices decrease, if the dollar depreciates against the euro, the gold prices increase.

Gold has always been a safe haven in crisis settings. Gold is always a liquid and self-investing instrument. Money can be obtained anywhere in the world

so the real money is gold. the dollar affects the price but cannot exceed

No, it's impossible. Supply of gold is limited and its value doesn't come from the pure air.

If you mean dollars value drops slower than gold, than it is possible. To be honest I just don't see why gold still worth that much today, since it has mostly lost its utility

During old times, a war break out and the government can be wiped out if they lose the war, thus their fiat money can become useless. Gold is not affected by a war, so at that time gold worked as the safest money

But nowadays, there is basically no chance of a war that can make US government and their money obsolete. The fear of Mutually Assured Destruction from a nuclear war will prevent a world war from breaking out. In such a relatively peace era, gold become less and less useful, mostly a token for confidence, but almost useless in international trading

I have another thought! The US dollar cannot beat gold. Because a dollar is not worth the price of gold. If the value of a dollar increases, it doesn't increase as much as gold. Many people also choose to invest in gold to get rich. It is also a form of business. People often buy gold

The idea that one day we may discover a ton of gold out of nowhere is unrealistic. The technology to find gold is already there, even on the most advanced systems that could discover gold, there are only so few places left that is unchecked and we can honestly say that there could be gold mined somewhere one day but it will never be so huge that people would make insane amounts of discovery of gold out of nothing.

When you literally have 1 ton of gold discovered that is a marvelous recovery, we are talking about amount of gold that will ruin the market for the gold market and just make it less valuable than dollar which means there needs to be a mountain full of gold somewhere that is unchecked and that is not going to happen at all, if there was even a small amount of gold, people would know about it, there is no chance that a mountain full of gold would go undiscovered in this age.

As Stompix said, OP, you can't compare those two without some metric, like one dollar compared to one gram (sorry I'm using SI) of gold. Let's say you talk about a general sense that one dollar will be more valuable than one gram of gold.

Is it possible? Yes, in theory, or just a mere thought experiment. Let's say we find a humongous deposit of gold that makes gold no longer scarce. The gold value will crash. Remember the "law" of supply and demand?

Is it probable in the real world? Hell no.

Paper over a gold? Well for so long gold has never lose its value but the government can control the paper money are very prone to inflation that's why in my opinion its better to invest in Gold rather than keeping your USD even though you keep it for a long time its value might decrease while the Gold itself stays gold and its value never losses.

Both have an advantage and disadvantages on their own.

What is longer, one litter of wine or two kilos of oranges?

I wonder why everybody is actually comparing this...
What are we comparing, the value of one dollar vs ..one ounce? one kilogram? one milligram of gold?

If we're still out comparing crazy stuff how about these:
Will the yen beat icecream?
Will the euro beat pork?
Will the pound beat coal?


So, you won't say no if I ask you to hand me a hundred of those useless pieces of paper, right?   For free , of course!

Basically yeah. Gold is worldwide and is way less affected by political and social events.

Question is a bit funny. I really doubt fiat currencies (as they currently are) will ever beat Gold. Real cryptocurrencies could beat gold in the future when probably they become more useful, valuable, durable, long-lasting,  deflationary, secure etc. Crypto needs to be backed by special kind of assets to become more useful or valuable.     Fiats would need to become more like real crypto to stand a chance.

Limited natural resources makes the Gold more valuable because we can produce more US dollars, but we can't produce golds. But although possible, it is unnecessary for the government to produce more money because it will money worthless and useless. So as far as I know, gold is more important because its price can be preserved no matter how long you will keep it.  Maybe at some point, its price increases while you're the one who holds it for a long time. US dollars can varies in time so it can go high and low every time. So it is better to invest gold than money because future generation will benefit that in the next years.

The dollar cannot be juxtaposed let alone compared to gold. Dollars are only currencies that can be printed from thin air. A dollar is just a piece of paper that has no intrinsic value written with a certain value. Printing costs plus material prices are not proportional to the value written in the dollar currency.

While gold is a precious metal whose value has been recognized from time to time. gold is used as a symbol of grandeur and glory as well as prosperity. When you hold gold, you hold Tangible Asset that does not depend on others. Tangible Assets in your grasp will become increasingly important when the financial crisis strikes.

So the dollar and gold levels are very different and there is no way the dollar can match or even exceed the value of gold.