what makes gold so valuable ?

[Jim Baker]

Had it explained to me like this once.

A 125 years ago(more or less) a US $20 gold piece would buy a very, very nice suit of clothes. Today that same $20 gold piece will buy you a very, very nice suit of clothes.

 

[finnhunter]

The reason gold is valuable is supposedly 1 oz of gold will buy the same amount of goods/services today that it bought in 1850. Inflation hedge.

Had this same discussion with a friend of mine who invests in gold. He used this example:

100 years ago, when gold was worth $20/oz, a gentleman could buy a nice suit with 1 ounce of gold. Today, when gold is $2,000/oz, a gentleman can buy a nice suit with 1 ounce of gold.

 

[finnhunter]

@jimbo4116 You typed it faster than I did...

 

[tr21]

you know I see all these predictions of recession and markets going to fall apart and the sky is falling, yet gold prices are going nowhere ! maybe at this day in time people have figured out it's just another shinny metal, nothing special. someone said scarcity well there's nothing scarce about it, every jewelry store has plenty of it and there's no long lines outside waiting to buy it. scarcity is gasoline back in the 70's and toilet paper in 2020, now thats scarcity long lines waiting on something to get to the store and the price doesn't matter . and thats stuff that has a 1 time use and gone. gold even when used is still reusable as gold.

 

[JustUs4All]

If TEOTWAWKI happens gold will have no more immediate value than dirt and perhaps less if the dirt can grow vegies. But if civilization returns then gold will have value again just like it has all the way down through history since the Pharoes. So if you fear TEOTWAWKI and have extra, putting it in gold (real tangible gold that you hold) would be better than leaving it in cash or stocks or bonds. The same is true for land but you will have to be able to hold onto either of them and survive for it to matter to you. Your grandchildren might like it though. LOL

 

[RatherB]

If I had money to invest it would be in land and only land.
Yeah land prices could fall but only temporarily. Look at what land is was going for in GA 30 years ago compared to today. And in that time you get to enjoy it or lease it out, sell timber, farm or whatever you want.

 

[tree cutter 08]

Gold ain't worth a flip to me. Seems like it would be more of a pain to get actual money out of it. Look how much trouble it is to get rid of a big chunk of coins

 

[RustyH]

Had this same discussion with a friend of mine who invests in gold. He used this example:

100 years ago, when gold was worth $20/oz, a gentleman could buy a nice suit with 1 ounce of gold. Today, when gold is $2,000/oz, a gentleman can buy a nice suit with 1 ounce of gold.

I have heard this before as well but its more practical to apply that to a silver certificate from the 1968 when the silver certificates went away as compared to today. I think silver is around $20 an oz now, so you can get the same today for $20 as you could back then for $1 silver certificate.

according to Google, Gas was .33 in 1968, so you could get 3 gallons for a silver certificate, today an oz of silver should buy 4-5 gallons I guess. (I don’t know for sure, I been on a ship working last 3 months, haven’t bought anything or seen prices)

 

[RatherB]

Look at price of gold over 100 years. Pretty poor gains up until 1970s. If I could go back in time 100 years I’d buy as much mountain land I could for $2 an acre. That same land today sells for $10,000 an acre.

 

[JustUs4All]

The only real advantage that gold has over land would be in a TEOTWAWKI situation and gold would be more portable and easier to defend by hiding it.

 

[Throwback]

“They” say it’s valuable ?

 

[tr21]

“They” say it’s valuable ?

and that pretty well sums it all up !!! kinda like tulips !

 

[NE GA Pappy]

Yand conducts electricity better than any other metal.

actually, silver is a much better conductor of electricity than gold, but silver will tarnish and connections will degrade

 

[HermanMerman]

It comes from the stars. What’s cooler than that?

 

[Batjack]

It comes from the stars. What’s cooler than that?

So does everything else..... so sayeth the Lord High Priest of the Church of Science Michie Kaku.

 

[Mexican Squealer]

It’s shiny and I can hold the little bars in my hand...I’m more of a silver fan as far as metals go.

 

[sinclair1]

It kept me married 22 years

 

[kmckinnie]

It’s free. All u have to do is dig it up.

 

[livinoutdoors]

Gold is the dream of stability available for purchase. The hope that you can outlast poor monetary policy by the fed, and that you can trade with a stranger if the worst happens. Neither is true.

 

[Sixes]

At least physical gold can be held and touched. Most people think nothing of investing in stocks of companies that produce nothing and are willing to invest in pieces of paper from that company that supposedly are worth a share of that company.

Shares of Facebook or Google or any thing web based only has value due to the internet. At least gold and silver can be bought in physical form.

If you think on it, currency is really only a piece of paper with a picture, serial number and a perceived value printed on it. Precious metals have been used as currency since the start of civilized societies.