I do not know much about the gold-dollar relationship.
The dollar was backed by Gold until Nixon decided otherwise
I've had mixed feelings about gold for years now and still do. There seems to be an undertone of impending doom that doesn't seem to be abating in the least, but I'm not sure what's coming. We had a global financial crisis in 2008 that went on for years; I'm not certain if we're going to get another one or if armageddon is coming, e.g., nuclear war or a severe terrorist strike. If it's the latter, we need to be buying survival stuff like seeds and land instead of gold.
I'm not sure what all this buying of gold was on the part of the governments. That doesn't seem to indicate doomsday, but I don't have an explanation--and I distrust what I read about such things.
The current financial system is like a Ponzi scheme. The only thing that makes it still alive is the machines to print money.
We live on borrowed money, the whole system is based on loans. It can't work indefinitely, like HYIPs there will be a point of collapse. It's almost mathematical.
Governments borrow money for everything, they can't even pay interests, some borrow money just to pay the interests. More debts for the countries and so its citizens.
It hasn't need to be something more dramatic like a world war, it could come just from one bank collapsing, or it hasn't need to be worldwide, it could be just located to an area like America or Europe. As an example, I could name Italy which is a country that could "crash" the whole European economy and perhaps more, banks are in serious troubles there
Who buys gold?
Central banks, Indians, rich Arabs. In Europe, gold is very, very regulated. In some countries, every transaction has to be declared, and sometimes, it's also taxed. It's a bit better in the US, but not by much. Gold also requires you to rent a deposit box at your bank, and it's hugely difficult to travel with. Shares or cryptocurrencies, which you can trade online, are a much smarter choice for the individual.
Right, but people have no problem to declare the gold bought or sold as well to pay the taxes that come with. Especially since you don't sell your gold you just buy and store it. The minimum period before reselling your gold is at least 20 years. And when it comes to taxes people don't really care because 1) if they have a loss, no tax 2) if there is a profit it's a bonus for them (because they did buy gold not to make a profit but to secure their capital)
Russia and Turkey made a lot of gold purchases.. now the states prefer to keep the gold instead of storing the dollar. I think that makes sense. what do you think?
Yes it make sense since they know the potential value of gold in the future and it can be more than enough for them to generate money. The market situation doesn’t trigger people from coming back to gold, since most of the hodlers are still holding and traders are still active, though gold is more stable I still want to invest on cryptomarket because I think this is more convenient to buy, hold and sell.
You can buy gold at the supermarket, can you buy Bitcoin?
Using a safety deposit box introduces another element of risk.
During the recent Cyprus banking crisis with capital controls in place customers were prevented by the banks from accessing their safety deposit boxes.
Always comes back to "if you dont hold it you dont own it", same applies to leaving all your crypto sitting in an exchange.
That's the reason people rent a safety box in countries where the governments can't take out your gold, like Belgium and Switzerland.
