Well let's get to I guess was the point you are trying to make which is gold is a great asset to hold.Jack Jones wrote: ↑Sat Jul 30, 2022 5:01 pmI was talking about gold being great from the standpoint of someone who owns it as an asset. However, it seems I inadvertently stepped into the role of the gold standard shill that you so desperately wanted to argue with.
Just curious, have you ever owned physical gold?
My counter to your assertion is that it is not a great asset to hold.
Reason: The government can take it or make it useless for the purposes of exchange for other goods and if you can't trade it for something what's the point other than to make jewelry?
Then you threw in that gold provides some kind of monetary balancing force to rampant inflation
And it does not and never has.
So what am I missing on what started this debate going?
After that you asserted that more dollars printed means they are worth less. No it does not mean that and I cited some easy to understand examples we've all lived through to illustrate that assertion just ain't true. The reverse is also true, when the Fed starts destroying money it doesn't necessarily make it more valuable either and for dang sure that is the case in a digital economy...and that my friend is why I asked you to post a chart of M2 velocity. If you don't understand the concept of monetary velocity you really should educate yourself on it...I promise an aha moment.
Moving along to now, I "think" we are now at physical gold is a great asset (but isn't good money...point conceded???) You noted it can be passed along quietly to someone else because I presume you think because it is a good store of value. If you think it is, great. Go for it. I don't. Gold and BTC produce nothing and fundamentally are built on the greater fool theory. I like intrinsic value, gold and btc have exactly none of that.
I'm a land guy. However, the government can take that too and they charge me for my ownership every year which is annoying for sure. But between some gold coins and an acre of farm land no question what I'm going to buy.
And nope, never owned physical gold in my life. The coins seem pretty cool to look at and I've thought about it, but I've never pulled the trigger. I might one day. As posted somewhere I do own a not unsubstantial amount of paper gold via the cheapest fee ETF there is in the US market. I really wonder if I should even bother with it though. Inflation adjusted, it hasn't made a dime since Dec of 1980. At least with a TIPs bond one can get a minuscule rate above inflation...and you are much more likely to get more when you need it with a TIPS than an ounce of gold. I assume you will agree that the volatility and cyclicity of gold is magnitudes higher than TIPS? And yes, I'm fully aware that the USG is the issuer of TIPS. As a store of value, anyone not wedded to gold would most likely conclude TIPS are a much better store of value as they are way more stable.
If I missed any other questions post them and I'll answer them.
Now, why haven't you answered any of mine?
Let's wrap this one up, shall we?