D
DeletedUser394
Guest
This might be a dumb question, but here goes.
I don't understand why gold, and to a lesser extent, silver, are considered stores of value.
I realize that due to inflation and other factors, more and more money comes into play, slowly eroding the buying power of a typical dollar.
However, the amount of gold in the world remains a constant. You can produce no more than what is already in the earth.
Edit: (I realize that the bolded section that I wrote probably provided me with the answer.)
Besides it's conductivity, status of wealth, and shiny-ness there really isn't much to do with gold.
You can't feed yourself with gold, you can't wear it... you can stare at it, and then have other people stare at it.
Is the demand side of the supply/demand equation, determined mostly by psychology and not actual neccessity/usefulness?
Or are gold and silver the equivalent of cash.
I'm asking this, because I bought a half dozen pure silver coins today, and I enjoy staring at them. I plan to buy hundreds, thousands, or hundreds of thousands of oz of gold and silver, platinum and palladium throughout my life.
Are precious metals the equivalent of the dutch tulip bubble, or unlike tulips, is there actual lasting value in precious metals?
I don't care if the price of my metals assets get slashed by 50% tomorrow morning. I just want to be reasonably sure that in 50 years time, they'll still be worth the money I put into them (regardless of the booms and busts in between).
I don't understand why gold, and to a lesser extent, silver, are considered stores of value.
I realize that due to inflation and other factors, more and more money comes into play, slowly eroding the buying power of a typical dollar.
However, the amount of gold in the world remains a constant. You can produce no more than what is already in the earth.
Edit: (I realize that the bolded section that I wrote probably provided me with the answer.)
Besides it's conductivity, status of wealth, and shiny-ness there really isn't much to do with gold.
You can't feed yourself with gold, you can't wear it... you can stare at it, and then have other people stare at it.
Is the demand side of the supply/demand equation, determined mostly by psychology and not actual neccessity/usefulness?
Or are gold and silver the equivalent of cash.
I'm asking this, because I bought a half dozen pure silver coins today, and I enjoy staring at them. I plan to buy hundreds, thousands, or hundreds of thousands of oz of gold and silver, platinum and palladium throughout my life.
Are precious metals the equivalent of the dutch tulip bubble, or unlike tulips, is there actual lasting value in precious metals?
I don't care if the price of my metals assets get slashed by 50% tomorrow morning. I just want to be reasonably sure that in 50 years time, they'll still be worth the money I put into them (regardless of the booms and busts in between).
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