Topic: Gold vs. U.S. dollar - page 3. (Read 602 times)

First of all, Bitcoin is limited and it will be totally mined quite soon (in couple years I believe).
Second of all, Bitcoin has real ways to use and spend it which can't be applied to gold.
I think it is a matter of time when Bitcoin will overcome gold

I think it will not happen.

We mine gold, it is a natural resource that means it is limited. hat means the price of Gold can still increase. In terms of dollars, the Federal Reserve bank is responsible for controlling the money supply in the country. As the price of the US dollar increases, it is because of what is happening but that can't be that fast to change, unlike Gold.

No, cause gold is limited , anyway the dollar can't have so much value cause this will means that coin will denominate, and value way to much more than it should and again will need banks to issue new coins and denominate it.

I think you are looking for insights to invest. If we look for an investor's perspective, it is always better to invest in Gold rather than relying on a currency system which is prone to inflation, while gold is not!

That literally means, the purchasing power of dollar will decrease over time. But the price of gold will adjust based on the inflation and demand-supply cycle. So Gold will always remain as a preferred destination for investors!

There is no possibility that USD could ever beat Gold.   Gold yearly mining emission is around 1.7% a year.  M1 supply increase of USD in 2019 was 7%  https://tradingeconomics.com/united-states/money-supply-m1    USD is not just M1, but many more.

I don't think so? I mean, if you think about it, one side is a store of value, and as long as its rarity is seen by the world, I doubt the Dollar could exceed it. On the other side, we have a currency backed by the government that keeps pushing for economic development that they have accumulated so much debt already. The only possible chance of Dollar exceeding Gold is when certain circumstances happen to Gold, much so that it is shaken so badly that the market decided that the rightful price for it is below that of a dollar.

As for investment, naturally gold. There are also stocks there that could be invested on that are almost at the same level of gold. Naturally, there's BTC, but I'm pretty sure you already know that.

The discussion should be, how much weight of a gold that dollar could surpass? If we are talking about an ounce, it is impossible, if its gram that we are talking about which is about 50 dollars right now, theoretically speaking that is possible but when you look at the reels of life and how any fiat currency has inflation whereas gold has deflation because it has scarcity and the moment you use gold for something irreceivable back that means you are destroying the already small existence of gold which causes it to be more expensive.

So in short, no, there is no way gold can ever be more valuable than gold, there is no way gold could worth more than any sort of commodity including orange juice prices as well because in the end even the most tiny commodity on earth will be more expensive than one dollar.

Perhaps I did not understand a little what was written in the cap (very uninformative), but the dollar loses to gold, because. for the production of dollars you need linen and cotton, and for gold, you need a field, people, equipment, and in any case, it will be severely limited in supply, because the richest field have already been developed.

Actually Gold and US dollar are inversely proportional If USD increases in value with other currencies the price of gold will decrease and vice versa. So if we expect any crisis or an economy slowdown its good to invest in gold if we expect a good run in the economy then consider decreasing the exposure on gold in the portfolio. Always good to have some exposure to gold which will give some stability to the portfolio

In addition to what fiulpro said, it's somehow like bitcoin (we refer to it as internet gold) in terms of competitive against US dollar, despite it's volatility which i think it's temporary.
From another approach, bitcoin (exactly like gold) is backed by the community convention to value it and can't be (almost) controlled by governments and big players in the global world market. Let's say that by investing in gold or bitcoin, you avoid big crashes that may occur by betting on dollar value. (I know usd does always look stable but this is based on multiple factors that are not mainly related to his real value)

My reply will not be the same if the us dollar is backed by gold. We all know this is a bad joke .

Yes. If everything (economically) stays exactly as it is (including inflation and all), it is possible in some scenarios, although the chances are close to 0.

1. If gold demand decreases radically. I cannot see this happening, but in theory it is possible. The only way I see gold would decrease in demand is if another substance with at least all the properties gold has would be discovered in a very large quantity, hence becoming widely used in comparison with gold.

2. If an immense quantity of gold is discovered. The high price of precious metals comes mostly from scarcity. Therefore, if a huge quantity of gold will be discovered and exploited, it would drive the prices down because it'd be less scarce than today.

Think of Bitcoin: the lower the demand is, the higher the selling power is. A consequence would then be the price. If through a hard fork BTC's max supply would be multiplied by 10 (having then a max supply of 210M instead of 21M), you'd have the same result.

However, 1 and 2 should happen in EXTREME conditions (if gold demand from any collector and factory would decline to all time lows, for example) in order for the value of gold to be of less value than the dollar.

There are other scenarios too, also possible only in extreme conditions ... if there would be a substantial deflation of the USD.. in reality, as I said, the chances of these scenarios to happen is close to 0.


Definitely. Be it precious metals or Bitcoin, they protect you from inflation. The value of gold doesn't change - when gold price rises, it means the value of DOLLAR changes most likely through inflation. In a deflationary scenario, the opposite happens. Gold stays the same, dollar changes.

So its better to invest in gold? thanks for your insight sir.

I think it cannot for the long term , simply because USD is governed by the particular government and therefore there is a possibility that the system can fail due to some political , social , economical reasons. But when it terms to gold , it's whole value is governed by people all around the world buying it like the staple food , there are countries where it's very common to find gold even in the poorest houses it's their tradition , their religion . I do think gold is more stable market and gives better returns than the USD .

Is there a possibility that can dollar beat the value of gold?