Topic: What do you think of gold price in long term? - page 9. (Read 1696 times)

Back in the day the tech to make pure aluminum sucked and even though aluminum was common it was costly to produce. So gold if truly on an asteroid in amounts 50 fold what is available here means nothing short term because getting down here at a good cost does not seem possible.

Btw if we could bring 50x the supply of gold down to earth cheaply we would a
have a battery revolution as solid gold batteries would last as long as 100 years.
Gold is by far the best material for electrical use.

I am actually surprised silver is as low as it is. Silver peaked near 50 usd twice since 1978. It has real utility in many cases yet remains well under that 50 usd number.

So what is the correct gold silver price ratio. is the 1600 to 20 or 80 to 1 correct.

or is the 30 to 1 number from ? correct.  give me a minute to get that info from bing search

silver was 44 in 2011 and gold was 1800 in 2011 so gold silver ratio was about 40 to 1 in 2011

the ratio in say 1978 was

went back to old charts 1980 silver got to 45 and gold was 920 so say 20 to 1


so three snapshots of gold to silver

2022 80 to 1 gold to silver
2011 40 to 1 gold to silver
1980 20 to 1 gold to silver

So the numbers picked in 1980 are when silver reach its all time high
the number picked in 2011 are when silver made a good comeback close to its alltime high
the current number is silver way off its all time high.

For me silver is likely to get closer to 40 to one ratio then gold will be able to maintain the 80 to 1 edge it has now.

Gold has low liquidity? I don't understand what you are trying to say. The gold market is one of the largest today, the total gold market capitalization is more than 11 trillion, 11 times the capitalization of the entire cryptocurrency market. If comparing gold with bitcoin it is true that gold is not as profitable and faster than bitcoin but gold is the safest asset today. That's why countries are trying to hoard gold rather than foreign currency or other assets.

Nothing is absolutely safe in this world, not even bitcoin. It is safe in our hardware wallet and very difficult to be stolen by hackers but you are sure that you will not have any problem in your life. Similar to gold, every asset is risky, nothing is completely safe.

If I understood correctly, you are interested in gold from the point of view of an ordinary person in order to save your savings, right? I approve of gold as an investment vehicle, if only from a diversification standpoint. It seems to me that it is not a bad idea to keep your money in physical gold and yes, it is only profitable in the long run. If you look at charts of the price of gold over the past years, then this is not a super profitable tool, but it is a good way to keep the value of your money. Especially when compared with national currencies. This is better than storing in paper money, but there are some features to consider. For example, gold has low liquidity and it is unprofitable to buy it for a short time. Also, the question arises of how to safely store gold.

Exactly because bitcoin is different, it will never replace gold. They both remain viable ways to park your dumping fiat. In other words both of them are fantastic for diversification.

I agree with the rest of your post but not this part. Gold is actually good both short and long term, specially as a store of value in times of crisis.

The cost of such an operation to "capture" an asteroid and bringing it back to earth intact is so high that it won't be worth it. At least not with the current technologies. Unlike bitcoin, the price of gold is decided mainly based on its production cost.

When Trump run he suggested returning to gold back currency and ending this fiat system that Nixon promised to be temporary only. Took more than 50 years and up to this day, the US is not willing to go back to the gold back standard.

BRICS countries are initiating to go back where today we can hear the news about them buying up tons of gold because that's what they are going to be doing according to several news channels. Why gold price had not gone up, I guess they also are suppressing its price still for it to be not attractive to speculators.

I have always known that China and Russia are superpowers that don't like the USA and its dominance in the economic space. I am happy to tell them that 'there is nothing they can do about it,' the political and economic leadership of the USA helps the world till this moment, so they should 'wax it off.' According to your points, has their dumping of the USD for gold helped now when the USD is flying higher and gold is selling? They should shun enmity and embrace healthy economic practices that will move their countries and the world forward.

That is so not true, do you know how long Gold has been in existence? people have been investing in Gold since centuries ago so will you say all those people of the past who invested in Gold during that time was because they don't believe in btc despite btc was not in existence then?
Yeah you can chose btc over Gold now because of the price speculation, it has high tendency to raise higher than Gold will ever be. But when it comes to physical utility and value, Gold will always stand out and remain valuable not because of the price only but because of what it is use for.

In this generation, btc is definately the best investment option base on several factors other than the price, like the ease of use, convinience, decentralize nature and more.

Gold is more of stable thing and you won't get the same kind of ride out of it that you will with Bitcoin.  With this being said, it has been established for thousands of years and the price does seem to go up in time, just not as quick or as high as some would like, but the bottom doesn't drop out of it either.  It is good for diversification purposes, spreading things around.

Gold is the world's largest investment that has been known for thousands of years, and I believe as long as the world exists then gold will continue to be valuable, although many experts believe that the largest gold reserves under the sea are found but this will not reduce the interest and value of gold .

I think gold is a high risk investment silver is far far far far safer.

My logic is gold asteroid talk does not go away. if it is real and can be brought to each cheaply enough gold loses scarcity.

Silver on the other hand is more plentiful thus the profit margin if it is on an asteroid is not realistic.

If gold is 1600 an oz silver is 20 an oz

so transporting gold from outer space is far more likely to happen.

So silver would still have the same amount of oz on earth while gold could become 2x to 5x more common.

So if you go metals I would say silver is the bet not gold.

I have a lot of silver but not a lot of gold.

legal disclaimer below:
this is an opinion so don't blame me if you buy 100,000 usd worth of silver and lose out.

also do not blame me if you decide to not buy gold and it shoots to 5000.

Its not a new thing, gold has been a net buy for central bankers for a couple decades now.  We could observe that roughly by the fairly strong rise for gold from hundreds to thousands in a fairly secure way.  I dont think we can trade below 1000 without it being extremely cheap relative ongoing worries and volatility, currency is not going to strength the government who operate paper FIAT only hope to have a steady decline not that they can arrest or reverse losses in currency values.


Nobody is forcing you to choose only one! Gold is an excellent option for diversification, so that you don't have all your money in one place (like all in bitcoin).
[/quote]

Its not an investment at all, its a commodity and best way to refer to it would be as insurance.  Anyone who holds more then 10% is probably over speculating and might suffer from that over balance to their portfolio.  Of course risk management and profits are not the same thing, you can be wrong and still get more profit but not having any gold is the most common mistake.

Gold has surpassed its life span for the regular people to make any logical investment in the long period of time to profit us a good wealth. You could put 10% of your salary every month into gold and live a 40+ year career with it, and when you are done you are going to have something good, there is no denying that. People who can do that, which is a luxury in itself because not many people can save 10% of their salary, then you will have a good retirement fund.

However, in a world where bitcoin can bring you 100x more than what gold can bring with the same method, do you really want to invest into gold? Governments can do that, because they want less risk, but people like you and me don't have to.

I don't think so this is going to happen. Why would countries go to gold instead of dollar standard? I mean if they will remove  US pegging of their currencies in international trade they will maybe create a swap sort of things with respective countries where by your currency can be strengthened. Moreover countries have come from this gold pegging system already earlier they used to keep gold reserves but they eventually got rid from it for good now they won't be going again into that mess for sure.

Why is gold good in the short term? gold is considered a stable asset, less volatile than bitcoin, so I think gold is the best safe haven or store in the short term as well as the long term. In the long term, gold still has upside potential but won't spike like bitcoin. If you are a risk-averse person, gold is clearly the best choice but if you want high return and can accept risk then invest in bitcoin. Neither is better than the other because they are used in different ways and in investment need to diversify portfolio, should invest in both to limit risk.

People are still making a huge amount of money from gold investment, and I don't think is an old practice in the land because many people are used to gold than Bitcoin and other investments to earn well in their living. According to some researchers, gold is preparing to break some record by rising to a particular price  gold investors have never experience in the community to allow those that invested in gold in the past to earn well from their gold investments.

I think that gold will remain relevant for decades to come and that nothing will change in that regard, and the only question is when its price will fall, considering that scientists are quite sure that there is gold in large quantities outside our planet. Only on one asteroid, which they named 16 Psyche, there is gold worth about $700 quintillion, which is a number that few will be able to understand.

Considering that the central banks have no alternative to the gold standard, we should not be surprised that they continue to buy it in large quantities, because that is the only thing over which they can have complete control. In addition, gold is something that will retain its value even if a major disaster occurs, when fiat and any cryptocurrency would lose almost all meaning.

Having some gold is a smart thing, assuming of course that you don't have something that just looks like gold

Yep, the main problem with gold is the non-market pricing mechanism.

Currently, gold has a very large advantage over bitcoin. 

Under banking law, gold is an integral part of the reserves of central banks.  This position is enshrined in the Basel documents.  This increases the value of gold as a recognized financial asset. 

Unfortunately, Bitcoin cannot yet be used as part of the gold - the foreign exchange reserves of the Central Banks. 

However, I think we will get there.  We just have to wait.

Gold and Bitcoin can work together there’s no need to compete, It’s always good to have more choices to fight inflation and the future of gold will be fine. There’s still a demand for gold, and it’s more stable compare to Bitcoin on a time like this, Gold is a good option for your short term goal while Bitcoin is better for long term.

I don't know if this will happen in the future? but right now gold is considered the safest asset in the world. Governments are scrambling to buy and hoard gold in a recession like this, still shows it to be the safest asset in all economic conditions. I agree with you that bitcoin contains all the features of gold and fiat combined, but currently in reality gold is much safer than bitcoin. You can't guarantee the future for bitcoin, but with gold it is sure, gold has been proven to be a valuable asset for thousands of years, nothing can be replaced overnight.