Topic: Gold vs. U.S. dollar (Read 614 times)

I don’t see that happening anytime. Gold is the world’s store of value and it has been beating the US dollars for more than fifty years now. Gold is a big thing and is among the precious stones that are well valued by people around the world. And we all know for sure that gold has a history of retaining it’s value, it’s not like Bitcoin that is volatile and fluctuates up and down a lot, it is well stable.

So, I don’t see the possibility of the USD overtaking gold when it comes to value, it can’t even overtake Bitcoin not to talk of Gold. Gold will always be topping the USD.

I think no, gold will still be better than USD, gold will always be above the USD because gold has never experienced inflation or lost its value. While the USD will occur inflation and loss in value. So if you want to invest, my advice is to choose gold as your investment

This one summarize it all, It's just a basic supply and demand law. Product that have limited supply will have unlimited demand however, products that have unlimited supply overtime it's demand will slowly go down. Dollar vs Gold is just like Bitcoin vs Dollar. Bitcoin price is going up as time passes by because, it has a limited supply but then, the dollar value is continuously going down because of it's unlimited supply.

To put it like this, the U.S. government can decide to print more dollars whenever they want, it's messing with supply. Gold has a limited supply and the cost of getting the gold is getting higher, it's deeper every time. Long story short in the long run we can assume that the value of the dollar will decline (what could you afford for $1 20 years ago), and the value of gold will increase (and it does over time, gold has steady growth over the past years). Nothing will change here, the dollar will continue to lose value and gold will continue with a steady rise.

indeed we can see the gold chart rallying, even now it seems to continue to increase. ap [Alagi, we know that Korean news is a corona nest too, so that many people will secure their property and apply to all countries, even though bitcoin has also gained appreciation since the beginning of the year, although the increase is not as good as gold

For the past 14 days, it looks like Gold has been performing quite well. Doing slightly well in relative to Bitcoin according to Bitcoin vs Gold chart
possibly due to the coronavirus scare with investors reallocating capital to gold as a mainstream safe haven

It’s very wrong to tell people to allocate 10% into gold.
We should tell people to allocate all their money include the future money also their entire disposable asset into gold, that’s right, 101% into gold! But we would still have people to constantly telling kids to allocate as little as 10% into gold.

I can sort of understand those situations and why gold lost its value but right now gold is not used for coins anymore and it is used for other stuff plus it is mainly an investment. There is no more black plague level of threat to humanity and even if there was the world is not bigger and more connected, so if something happens in China like corona, everyone else knows about it in the world and takes care of that before it spreads so it doesn't become black plague level of thing.

I doubt we will ever find a huge amount of gold anywhere that will drop its level on earth anymore neither. The only possible thing that could ever happen is if we master asteroid mining and get gold on some other system and bring it back to earth and that is easily decades more for something like that.

We all know that the dollar is subject to inflation, which is 2-3% per year. But there is no inflation in gold. And we see that the value of gold is constantly growing in dollars. Therefore, if there is such a possibility, you need to keep part of your savings in gold.

I don't think so. Dollar doesn't have such stability as gold. Since gold is used all over the world, and the dollar, although it is a widely used currency, it still loses gold. I don't think that the dollar has an advantage comparing with gold.

So their value is hardly comparable, I agree. Value of Usd is higher due to its usability, but gold is not a currency really so how can one compare them anyway

Why people always compare other currencies to precious metals like gold and silver? Precious metals like gold can't compete with USD because they have a huge difference that USD is used for daily expenses that you could exchange it for goods with it, while gold can be used in many things such as equipments, statues, jewelry, and investments.

This is not necessarily true in all cases, dollar-wise or otherwise

Gold can lose its value irrespective of the value of fiat currencies which it is priced in. There are many reasons for this, and it does happen as well as happened in the past. If history teaches us anything, gold lost most of its value in the 14th and 16th centuries. In the first case, it was the Black Death pandemics which decimated Europe's population, with the effect being that gold had become abundant even if its total amount remained essentially the same

And the second time it was Inca gold that had flooded Europe in the 16th century, which led to its massive devaluation now specifically due to increased supply. Indeed, these cases are extreme examples, but they do show us that gold is not somehow exempt from the basic supply and demand laws, with the implication being that the value of gold is not set in stone (I sense the pun here) or can only increase with time. This is definitely not so

Dollar and gold is different to each other. Dollar is mainly used for us to be able to transact. The value of it is continuously changing because of the number of supply of it. Gold is much more stable than dollar since it is not included in the transaction that we have plus the fact that the production of gold is much more slower than dollar. Meaning, it is impossible for dollar to beaten up gold in terms of value.

I also feel like you, that the dollar is very affected by the state of the country and certainly political and economic which is very instrumental in regulating it. not with gold which is clearly freer and has become a reference for all countries. investment is certainly better if you want gold compared to the dollar, because gold is quite stable.

I will never happen because of some political , social , economical reasons.
The value of gold is more stable and guaranteed.

Go for the gold.
Not the USD.
They will just keep on creating that money and inflation is just on their side.
While gold is getting more difficult to be mined.

Stay with precious metals. Sometime in the future they will all be depleted and its value will grow more.
Look at how they even recycle hardware from computers and smartphones now. They want the gold in it.

indeed both of these have a clear difference from supply but you should be able to see that the profit gained can be more when you invest in coins that have a limited supply such as gold that has a limited supply than USD that can be printed whenever they want.

As an investor or trader, we must consider all the things we need just to earn more profit. Now one of the most thing that can you now invest is with the use gold we all know that the gold today has the most expensive market price next to the stones with naturally occurs and one of the good investment it today because it has a good profit and many people makes the gold as their secondary source of money. One of the good things to do while the market price of the fiat currency is to have a lot of us dollars because of the demand and profitable exchange all over the world sometimes this is the basis of other currency to exchange.

Having USD never can be considered as investment,so you have only one choice now is Gold and not a bad choice.

But if you really wanted to multiply the capital value in short time then gold is not the best asset for this,in this crypto forum most people will say crypto currencies so I will suggest you the same but there are other possibilities as well like real estate but liquidity is a problem with it,can be stocks but need extensive skill and experience.

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.

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?